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Pages 1-20 of 51

Pages 1-20 of 51

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Pages 1-20 of 51

Pages 1-20 of 51

F.—6

1902. NEW ZEALAND.

OCEAN MAIL-SERVICES (FURTHER PAPERS RELATING TO). [In continuation of Paper F.-6c, presented on the 17th October, 1901.]

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

INDEX. San Francisco Mail-service— Page Oceanic Company olaiming Payment from Australian States. Date of terminating Late Contract. Alleged Proposal to omit New Zealand from Oceanic Company's Eoute : Sydney Agent's Utterances. Proposal for Contract with New Zealand. Repairs to Steamers. Protests in New Zealand against subsidising Ooeanio Company. Value as Passenger Route. Parliament authorises Eighteen Months' Renewal of Service. Feeling against Exclusion of British Vessel. No Proposal made to Federal Government to subsidise Service. Proposals for Continuation of English Communication in case Negotiations with Company fail. Chambers of Commerce on Oceanic Freight-rates. Mr. Spreckels objects to Lowered Poundage Rates : acoepts Resolutions of Parliament as Basis of Contract. Altering Day from Auckland, Saturday to Friday, to avoid Atlantic Delays. Time-table for 1902. Preparation of Contraot: Terms ; Detention at Ports ; Demurrage ; Passenger and Freight Rates ; Harbour Dues; Chambers of Commerce Conference objecting to Service not under British Flag. Hour of Despatch from Auokland : Proposal for Night Train from Wellington. Auckland Quarantine Regulations. Use of Service by Fiji. Copy of Contraot .. .. .. .. .. 1 Incidents of United States and Atlantic Transit: —Delays in Arrival in San Franoisco ;in London. Use of Slow Steamers from New York. Breakdowns on Pacific Labour Troubles: Qaarantine. Delay in Amerioan Overland Transit. Effecting Rapid American Transit to catch Saturday's Fast Steamer at New York :by San Francisco Post Office ; Quarantine Officers and Customs Officers; Oceanic Company and Railway Companies. Representations to New York Post Office for Special Despatch. Steamers not maintaining Connection at San Francieoo through Protracted Repairs : Mail-agents waiting over at Honolulu. Fiji Mail delayed., Imperial Post Office refusing to despatch North Island Mails via Brindisi only in First Week after San Francisoo Despatch. Payment for Despatch from United Kingdom for Australia, November, 1900. Weights of Mails for Way-ports on Paoifio. Union Paoifio and Southern Paoific Railway Companies amalgamated. Suggestion to modify Quarantine at San Francisco to permit of Rapid Transfer of Mails. "A Race with the Australian Mails." Oceanic Company detaining Steamer at San Francisco to await " Saxonia's " Mails : Claim for Detention made and withdrawn. Altering Pacific Steamers to increase Speed. Use of Slow Steamers from London: London asked to use Swiftest Vessels, alternative to Contraot Vessels. Washington Office not compelling Ooeanic Company under Contract to detain Steamers. Homeward Delays continue : Proposal to obviate by Friday Despatch from Auckland .. .. .. 28 Vancouver Service — Appropriation of Sea-postage on Mails from United Kingdom via Canada carried by Steamers of CanadianAustralian Line. Rumoured Acceleration of Canadian-Paoiflo Service. Vancouver Steamers again calling at Fiji: Despatch of Vancouver Mails from Auckland to Fiji: Special Arrangements for May, 1902. Resolutions of Chambers of Commerce Conference, that Postal Services should be under British Flag: --Vancouver Service reinstated ; Federal Service connected with by Weekly New Zealand Service. Subsidy paid by Contracting Governments for Vancouver Service .. .. .. 46 Federal and Australia-New Zealand Services— Transit Rates across Italy and France. Owing to delay to San Francisco Steamer, Mails despatched by Federal Service : Arrangements for Connection. Chamber of Oommeroe proposing Altered Timetable for New Zealand-Australian Running to fit on to Federal Service. New Zealand coming in to Federal Service on Basis of Population .. .. .. .. .. .. .. 48 Interpeovincial Service— Arrangement for Continuation of Servioe. Steamer's Detention at Auckland on Tuesday not a Ground of Charge. Providing Daily Servioe between New Plymouth and Onehunga. Altering Running to suit Friday's Despatoh outward from Auokland ~ .. ~ .. ~ .. 50 I—F. 6.

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SAN FBANCISCO SERVICE.

ARRANGEMENT WITH OCEANIC COMPANY, ETC.

No. 1. The J. D. Spbbckels and Bros. Company, San Francisco, to the Secretary, General Post Office, Wellington. Sir, — Oceanic Steamship Company, San Francisco, 15th June, 1901. We are in receipt of your favour of the 29th April [No. 160, F.-6, 1901], and have to thank you very much for your prompt reply to our cablegram of 16th April, requesting that Mailagents might furnish us with weights of mail-matter on arrival at San Francisco. We are also in receipt of your statement of mail-poundage under date of 22nd April, showing amounts earned by this company from your Government for carriage o£ mails from Auckland to San Francisco. For the purpose of enabling us to file a claim with the Australian authorities for the carriage of mails from Sydney since the discontinuance of the contract under which we were operating with the Union Steam Ship Company, will you kindly inform us on what date or voyage the said contract terminated ? We presume that we are to deal directly with the Australian authorities, and not through you, with regard to payments due since that period. As regards the carriage of local mails, Auckland to Sydney and vice versd, we understand that this is being treated as heretofore by the payment of a monthly gratuity. Will you kindly send a copy of your reply to this to Messrs. Burns, Philp, and Co., Sydney. Meanwhile they will have received instructions from us as to the action they are to take upon the receipt of the information from you. Yours, &c, J. D. Spreckels and Bros. Company. The Secretary, General Post Office, Wellington.

No. 2. The Secretary, General Post Office, Wellington, to the J. D. Spreckels and Bros. Company, San Francisco. Gentlemen,' — General Post Office, Wellington, 22nd July, 1901. I have the honour to acknowledge the receipt of your letter of the 15th ultimo, asking on what date the contract between this Department and the Union Steam Ship Company of New Zealand for the San Francisco mail-service terminated, and, in reply, to inform you that that service terminated at Sydney on the 28th October, 1900, with the arrival of the " Moana," and on the 26th November at San Francisco with the arrival of the " Mariposa," and the present service commenced with the departure of the " Alameda " from Sydney on the 2nd December last. With respect to payment for New South Wales, you should deal direct with the New South Wales Postal Department, as from the commencement of the service. The other Australian States have not been informed directly of the taking-over of the service by your firm, but they will now be advised to make payments to this Department up to the end of last month, and that hereafter you will make your own arrangements for collecting the amounts due. All mail-moneys received by this Department from the Australian States will be paid over to you in due course. The usual arrangement for conveyance of local mails between Auckland and Sydney will be altered, and the ordinary gratuity will be paid to your Auckland agents. Vouchers for payment of the undermentioned sums have this day been forwarded to Messrs Henderson and Macfarlane, the earlier payments having been made to the Union Steam Ship Company, as arranged by you: By the E.M.S. "Sonoma," 2nd March, £1,173 7s. 5d.; by the E.M.S. "Ventura," 24th March, £1,139 Bs. Id.; by the E.M.S. " Sierra," 13th April, £927 10s, 5d.; by the E.M.S. "Sonoma," 13th May, £1,245 16s. 9d. ; by the E.M.S. "Ventura," 25th May, £639 ss. lid. A copy of this letter has been forwarded to Messrs. Burns, Philp, and Co. at Sydney, as requested. I have, &c, W. Gray, Secretary. Messrs. the J. D. Spreckels and Bros. Company (Limited), San Francisco.

No. 3. The Secretary, General Post Office, Wellington, to Messrs. Burns, Philp, and Co., Sydney. Gentlemen,— General Post Office, Wellington, 22nd July, 1901. At the request of the J. D. Spreckels and Bros. Company, I beg to forward herewith copy of a letter from this office to-day to that firm with regard to payments on account of the San Francisco mail-service. I have, &c, Messrs. Burns, Philp, and Co., Sydney. W. GRAY,|Secretary.

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No. 4, The Secretaby, General Post Office, Wellington, to Messrs. Henderson and Macfarlane, Auckland. (Telegram.) Wellington, 24th July, 1901. A Press telegram from Sydney, published in Neiv Zealand Times yesterday, referring to the statement made at Auckland that Messrs. Spreckels's steamers are bound to call at Auckland, alleges, on the authority of Messrs. Spreckels's Sydney managing agent, that the steamers are not bound to call at your port, as there is a clause in the contract giving the company the right not to call at a New Zealand port if they so wish. Are you able to confirm this ? We have always understood that under their contract with the United States Post Office Messrs. Spreckels are required to call at Auckland.

No. 5. Messrs. Henderson and Macfaelanb, Auckland, to the Secretary, General Post Office, Wellington. (Telegram.) Auckland, 24th July, 1901. Have no copy of contract. Herald leader states this morning Mr. Spreckels plainly stated that contract with American Government included Auckland outward trip, only leaving it optional on return trip. Think Sydney agents refer to return trip. Think Union Company, Dunedin, has copy existing contract.

No. 6. The Secretary, General Post Office, Wellington, to Messrs. Henderson and Macfarlane, Auckland. (Telegram ) Wellington, 24th July, 1901. Thanks for telegram. If the Sydney agents really meant what you suggest, it is a pity they expressed themselves so indefinitely. lam aware that Spreckels's contract with the United States Post Office does not cover the running on the return voyage from Sydney to Frisco ; indeed, the Washington Post Office [No. 108, F.-6, 1901] has already intimated to us that while Messrs. Spreckels are at liberty to enter into a contract with New Zealand with respect to the conveyance of the Homeward mails, the firm has no authority for making any arrangement affecting the inward service—that is, from San Francisco. Messrs. Spreckels, however, have declined to enter into any contract with us until such time as they have had practical experience of the capabilities and possibilities of the new steamers and the service.

No. 7. Messrs. Henderson and Macfaelane, Auckland, to the Secretary, General Post Office, Wellington. Oceanic Steamship Company (American and Australian Line), Sib,— Auckland, 25th July, 1901. We have the honour to acknowledge receipt of your letter of the 22nd instant [not printed], and telegram of the 24th instant, also of the vouchers calling for payment of mail-moneys for five trips of Oceanic steamers, for which we thank you. In reply to your other telegram of the 24th, requesting to know whether we had copy of the contract between the Oceanic Steamship Company and the United States Government, we replied in the negative, and referred to a leader which appeared in the Auckland Herald of yesterday's date stating that when Mr. Spreckels was here he plainly announced that under the present contract Auckland was only obligatory as a port of call on the trip from San Francisco, leaving it optional on the return trip. We also informed you that the Union Steam Ship Company were likely to have a copy of the contract. We might add that no official information has reached us from headquarters regarding a change of route, as hinted in a recent cable from Brisbane, Q., but are inclined to think that, should a subsidy be granted to any other trans-Pacific company, the United States Government might naturally agree to allow a substituted port of call in lieu of Auckland. Any reliable information that may reach us bearing directly on this point we will pass on to you. Yours, &c, The Secretary, General Post Office, Wellington. Henderson and Macfarlane.

No. 8. The Secretary, General Post Office, Wellington, to the Deputy Postmaster - General, Melbourne. Sir,— General Post Office, Wellington, 27th July, 1901. I have the honour to inform you that, as the contract between this Department and the Union Steam Ship Company of New Zealand (Limited) for the performance of the San Francisco mail-service has terminated, the arrangement under which New Zealand collected from noncontracting States the poundag6-rates for the carriage of their mails by that route will cease as from the 30th ultimo. All moneys due by the non-contracting States from the commencement of

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the new service up to the 30th ultimo will be claimed in the usual way by this Department for payment to the J. D. Spreckels and Bros. Company, which will communicate with you as to the manner in which future payments for the conveyance of your outward mails shall be made. I have, &c, The Deputy Postmaster-General, Melbourne. W. Geay, Secretary. [Similar letters to the Deputy Postmasters- General, Adelaide, Brisbane, Perth, and Hobart.]

No. 9. The Secretary, General Post Office, Wellington, to Messrs. Henderson and Macfarlane, Auckland. Gentlemen, — General Post Office, Wellington, 27th July, 1901. lam in receipt of yours of the 25th instant. I scarcely understand the action of Messrs. Spreckels's Sydney agent. If it means that he is coquetting with the Queensland Government merely to secure a subsidy and thereby oust New Zealand from the full advantages of the San Francisco line as the mail-route with the Mother-country, which the colony has enjoyed for so many years, then there can be no two opinions but that Mr. Spreckels is treating our Government very badly. Mr. Spreckels approached this Government, and in turn negotiations were opened up with him about entering into a contract; but he set the negotiations aside until such time as he had sufficient experience of the running of his new steamers. . . . The question of making a contract with Mr. Spreckels must necessarily come under the consideration of Parliament in a few weeks, and it is essential that the Government should know Mr. Spreckels's mind without any delay. I have, &c, Messrs. Henderson and Macfarlane, Auckland. W. Gbay, Secretary.

No. 10. Messrs. Henderson and Macfarlane, Auckland, to the Secretary, General Post Office, Wellington. Oceanic Steamship Company (American and Australian Line), Sir,— Auckland, 29th July, 1901. We have the honour to acknowledge the receipt of your telegram of even date [not printed] inquiring whether the repairs to the " Sonoma " were not completed at Sydney. We replied stating that the new cylinder was not placed, as it was thought best to send the steamer back under compound engines, so as to enable her to keep contract dates. Yours, &c, Henderson and Macfarlane. The Secretary, General Post Office, Wellington.

No. 11. Messrs. Henderson and Macpaelane, Auckland, to the Secretary, ■ General Post Office, Wellington. Oceanic Steamship Company (American and Australian Line), Sir,— Auckland, 31st July, 1901. We have the honour to acknowledge receipt of your favour of the 27th instant, contents of which have our attention, on receipt of which we wired you : " Eeceived yours twenty-seventh. To-day's mail brings important letter from Mr. Spreckels. Our Mr. Dunnet proceeds Wellington latter end this week or beginning next. Be the action of Mr. Eamsay of the Sydney office, we are without any information on this subject other than what has appeared in the newspapers — which, as you know, is not always reliable. We can assure you that Mr. Spreckels has no idea of treating the New Zealand Government badly, as mentioned in your letter. He has had considerable worry with the new steamers, and can only now say that they are in good working-order. The "Ventura " and " Sierra" have been fixed up, and the " Sonoma " will be so on her arrival at San Francisco this trip. The " Ventura's " mail has brought a letter from Mr. Spreckels in which he expresses his willingness to enter into a new contract with the New Zealand Government, and Mr. Dunnet proceeds to Wellington next Sunday to lay the matter before the Government for their consideration. We have, &c, Henderson and Macfarlane. The Secretary, General Post Office, Wellington.

[Bead here F.-6b, 1901.]

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F.—6

No. 12. The Seceetaby, General Post Office, Wellington, co the Depute Postmasteb-Genebal, Sydney. (Telegram.) Wellington, 20th September, 1901. Fe'isco service: Have Messrs. Spreckels made any proposal to your Department or to Federal Government to subsidise service ? If so, could you inform me nature of proposals, and whether likely to be entertained? For your information, I may say that Messrs. Spreckels have proposed to enter into a five-years contract with New Zealand for an annual subsidy of between twenty-six thousand and twenty-seven thousand. This has been declined, and Government submitted reduced offer, which in turn was declined by Spreckels. In view of early discussion of question by our House of Bepresentatives, would be glad to hear from you as to position of service with regard to your State or the Commonwealth.

No. 13. The Deputy Postmastee-Genebal, Sydney, to the Seceetaey, General Post Office, Wellington. (Telegram.) Sydney, 21st September, 1901. Youe cable of yesterday re Frisco service : I have repeated to Postmaster-General in Melbourne.

No. 14. The Peesident, Progressive Liberal Association, Christchurch, to the Hon. the PostmasteeGenebal, Wellington. Sib, — Progressive Liberal Association, Christchurch, 25th September, 1901. The committee of management of the Progressive Liberal Association have instructed me to send you the following resolution : " That, in view of the American navigation laws which unduly favour America to the detriment of New Zealand trade, the Progressive Liberal Association strongly urges that the Postmaster-General decline to subsidise in any form the Spreckels Company's steamers." I have, &c, The Hon. the Postmaster-General, Wellington. F. S. Yates, President.

No. 15. ' The Hon. the Peemiee to the Agent-Geneeal. (Telegram.) Wellington, 9th October, 1901. Fe'isco service: Question renewal to be submitted to House next week. Meantime instruct London Post Office forward mails as usual.

No. 16. Mr. Dunnet (Messrs. Hendebson and Macfablane), Wellington, to the Hon. the PostmasteeGeneeal, Wellington. Sib,— Wellington Club, Wellington, 14th October, 1901. I have the honour to inform you that I have cabled to Mr. J. D. Spreckels the proposals (as published) to be laid before the House of Eepresentatives in re the San Francisco mail-service, and have received a reply from him saying that he " cannot entertain the proposal." I have, &c, The Hon. the Postmaster-General, Wellington. Geo. Dunnet.

No. 17. House of Eepbesentatives : Resolutions passed Feiday, the 18th Day of Octobee, 1901. Resolved, Francisco Mail-service. 1. That, in view of the temporary agreement with the J. D. Spreckels and Bros. Company (the Oceanic Steamship Company, of San Francisco) for the performance of a three-weekly service between San Francisco and Auckland for one year expiring next month, — (a.) This House authorises the Government to enter into a contract with the said company for a renewal of the present San Francisco mail-service for a term of one year and six months, subject to the following conditions :— (b.) That the payment for the conveyance of mails from New Zealand to San Francisco shall be at the rate of 7s. 6d. per lb. for letters, Is. per lb. for books, packets, &c, and 6d. per lb. for newspapers, with a minimum of £15,000 and a maximum of £20,000 per annum ; or (c.) That, in lieu of the foregoing payments, a fixed annual subsidy of £20,000 be paid, provided that one British-owned steamer, registered in New Zealand, be employed in the service. (d.) That the time between San Francisco and Auckland shall not exceed seventeen days. (c.) That no bonus shall be paid for early arrival, and a penalty at the rate of £4 an hour shall be enforced only when late delivery exceeds forty-eight hours.

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(/.) That all mails tendered to the contractors at Auckland and San Francisco by or on behalf of the Postmaster-General of New Zealand shall be conveyed by the contract vessels, and sufficient and secure accommodation provided for the same. (g.) That suitable accommodation and lighting shall be provided for the purpose of sorting the mails on board the contract vessels, and first-class accommodation provided without charge for a mail-agent and an assistant, or, if required, two assistants. (h.) That during the continuance of the contract, and so long as the same shall be faithfully carried out by the contractors, no charge for harbour dues, dock dues, or other rates shall be made or levied under "The Harbours Act, 1878," or any amendment thereof, or under any special Act in that behalf, at the Port of Auckland, for any of the steam-vessels employed in carrying out the contract. (i.) That any agreement entered into between the Postmaster-General of New Zealand and the J. D. Spreckels and Bros. Company shall, where applicable, follow the provisions of the agreement entered into between the Postmaster-General and the Union Steam Ship Company of New Zealand (Limited) on the 14th day of August, 1895, and the renewed agreement made on the 11th day of April, 1899. (j.) And that the terms and conditions of clause 7 of the agreement of the 14th day of August, 1895, providing for the detention of the vessels at San Francisco for the mails from Great Britain, shall be given effect to as far as may be consistent with the contract subsisting between the J. D. Spreckels and Bros. Company and the United States Government. Resolved Vancouver Mail-service. 2. That this House authorises the Government to enter into negotiations for establishing a three-weekly or a four-weekly Vancouver mail-service, subject to the following conditions : — (a.) That the contract shall be for a term of not less than three or more than five years. (b.) That the payment shall not exceed £20,000 a year. (c.) That the service shall be performed by vessels of not less than 6,000 tons, having firstclass passenger accommodation, and fitted with all modern improvements, and also refrigeratingchambers, and chilled chambers for fruit and dairy produce. (d.) That the time shall not exceed eighteen days between Vancouver and a New Zealand port, the selection of which to be at the contractor's option. (c.) That the terms and conditions of contract proposed in respect of the San Francisco service shall be applied to the Vancouver service so far as they can be adopted. Resolved— Federal Mail-service. That the Government shall also negotiate for a fortnightly intercolonial service to provide prompt connection with the Federal mail-service at Melbourne and, Sydney, — (a.) Between Wellington and Sydney ; and (b.) Between Melbourne and the Bluff; and, in addition, in the event of the San Francisco service not being arranged, (c.) Between Sydney and Auckland.

No. 18. The Secbetaby, General Post Office, Wellington, to the Resident Agent for New Zealand, San Francisco. (Telegram, posted at Auckland.) Wellington, 19th October, 1901. House last night approved renewal Frisco service by thirty-five to twenty-eight votes. Payment to be 7s. 6d. per pound for letters, in place of 10s. sd. Books and newspapers at same rates as at present. Minimum payment, £15,000, and maximum £20,000. Government proposed renewal for three years, but House reduced this to eighteen months .... Feeling is very strong against a British boat being shut out, and British vessels prohibited carrying passengers or cargo between Honolulu and Frisco. I hope Mr. Spreckels will accept, as lam satisfied no better terms can be obtained. The minimum payment was only inserted last night, and was not in original proposals ; and even then there was a division on an amendment made to reduce to £12,000.

No. 19. The Secbetaby, General Post Office, Wellington, to the J. D. Spbeckels and Beos. Company, San Francisco. Sib,— General Post Office, Wellington, 21st October, 1901. I have the honour to forward herewith three copies of resolutions in reference to the San Francisco and other mail-services, passed by the House of Eepresentatives on the 18th instant. I have, &c, W. Gbay, Secretary. Messrs. the J. D. Spreckels and Bros. Company, San Francisco. [Copies also sent to the Agent-Geneeal ; Mr. Smith, Eesident Agent in San Francisco; the Managing Dibectob, Union Steam Ship Company ; the Manages, Huddart, Parker Proprietary, Wellington ; and the Genebal Manages, New Zealand Shipping Company.]

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No. 20. The Seceetaby, General Post Office, Wellington, to Mr. Dunnet, Wellington. Sib,— General Post Office, Wellington, 21st October, 1901. I have the honour, by direction of the Postmaster-General, to forward herewith six copies of resolutions passed by the House of Representatives on Friday, the 18th instant, in connection with the renewal of the San Francisco mail-service. I shall be glad if you will, as early as possible, communicate with Messrs. the J. D. Spreckels and Bros. Company, and inform me whether the terms offered for the renewal of the service for a term of one year and six months are acceptable. I have, &c, G. Dunnet, Esq., Wellington Club, Wellington. W. Gbat, Secretary.

No. 21. The Seceetaby, Postmaster-General's Department, Melbourne, to the Seceetaby, General Post Office, Wellington. Commonwealth of Australia, Postmaster-General's Department, Sib,— Melbourne, 22nd October, 1901. With reference to your inquiry, by cable, of the Deputy Postmaster-General, Sydney, on the 20th ultimo, as to whether the Messrs. Spreckels had made any proposal to that office or to the Federal Government to subsidise a service to San Francisco, I have the honour, by direction, to inform you that no proposal has been submitted to this Department on the subject in question, and inquiries through the Department of External Affairs have elicited the information that none has been made to that Department, though one of the members of the firm called on the Prime Minister when passing through Sydney some months ago. I have, &c, The Secretary, General Post Office, Wellington. Robt. T. Scott, Secretary.

No. 22. The Secbetaby, General Post Office, Wellington, to the Seceetaby to Conpebence of New Zealand Chambebs of Commerce, Christchurch. Sib,— General Post Office, Wellington, 23rd October, 1901. I have the honour, by direction, to refer to your letter of the 28th January last [No. 190, F.-6, 1901], forwarding resolutions carried at the Conference of New Zealand Chambers of Commerce held at Christchurch, with reference to mail-service communication between New Zealand, America, and Europe, and to forward herewith two copies of the mail-service resolutions passed in the House of Representatives on the 18th instant. I have, &c, H. Antill Adley, Esq., W. Geay, Secretary. Secretary to Conference of New Zealand Chambers of Commerce, Christchurch.

No. 23. Mr. Dunnet, Auckland, to the Seceetaby, General Post Office, Wellington. Oceanic Steamship Company (American and Australian Line), Sic, — Auckland, 2nd November, 1901. I have the honour to acknowledge the receipt of your favour of the 21st October, with enclosures (six copies of the resolutions passed by the House of Representatives on Friday, the 18th ultimo), in connection with the renewal of the San Francisco mail-service, for which I thank you. I have communicated with Mr. Spreckels, and find considerable difficulty in explaining the position at this distance by cable. The reply received said, " Cannot entertain proposals if we cannot obtain letters ten shillings and fivepence." This, of course, refers to the old rate for letters. I shall be pleased to hear from you whether there is any possibility of the old rate being continued. I have, &c, The Secretary, General Post Office, Wellington. Geo. Dunnet.

No. 24. The Hon. the Peemieb to the Agent-Genebal. Sib,— Premier's Office, Wellington, 6th November, 1901. In continuation of my letter of the 21st ultimo, covering copies of the mail-service resolutions, I have now the honour to enclose herewith six copies of the debate on the ocean mailservice question which took place in the House of Representatives on the 17th and 18th idem. On the resolutions being communicated to the representative in the colony of the Oceanic Steamship Company, that gentleman immediately cabled to San Francisco, and received a reply to the effect that Mr. Sweckels i s not disposed to consider any offer of a poundage-rate of less.

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than 10s. sd. for letters. At the request of the company's representative, definite action has been deferred until there is time to receive a further cable from the company after the arrival at San Francisco of the " Ventura," by which steamer he forwarded newspaper reports of the debate, and fully reviewed the position, which may result in the new terms being accepted by the company. At the moment of writing, advice has been received that the " Ventura " reached San Francisco on the 4th instant, so that the expected further reply may reach me before the departure of the mail from Auckland, in which case I shall supplement this letter by a telegram to be posted there, and will at the same time cable you of the final decision. In the event of the Oceanic Steamship Company refusing to accept the terms approved by Parliament, Government will probably arrange for a temporary service by Federal packet until the possibilities of a satisfactory Vancouver service are known. You may perhaps be in a position to ascertain what is being done by the companies interested, and whether there is any intention of including New Zealand in any scheme for a fast service between Vancouver and the colonies. Owing to the absence from New Zealand of the Managing Director of the Union Steam Ship Company, who is giving this business particular attention, little or no reliable information is obtainable here. I have, &c, J. G. Ward, for the Premier. The Hon. W. P. Beeves, Agent-General for New Zealand, London.

No. 25. The Secretary, General Post Office, Wellington, to the Besident Agent for New Zealand, San Francisco, and Others. Sir,— General Post Office, Wellington, 7th November, 1901. I have the honour to forward, under separate cover, three copies of the debate which took place in the House of Bepresentatives on the 17th and 18th ultimo on the question of the ocean mail-services. I have, &c, W. Gray, Secretary. H. Stephenson Smith, Esq., Besident Agent for New Zealand, San Francisco. [Copies similarly forwarded on the same date to Mr. Spkeckels and Mr. Dunnet.]

ISfo. 26. The Besident Agent for New Zealand, San Francisco, to the Secretary, General Post Office, Wellington. (Telegram.) San Francisco, 27th November, 1901. Have you made any agreement Spreckels ?

No. 27. The Secretary, General Post Office, Wellington, to the Besident Agent for New Zealand, San Francisco. (Telegram.) Wellington, 28th November, 1901. No ; Spreckels has not yet confirmed the arrangement.

No. 28. The Secretary, Wellington Chamber of Commerce, Wellington, to the Hon. the PostmasterGeneral. Sir, — Wellington Chamber of Commerce, Wellington, 3rd December, 1901. I am instructed to respectfully remind you of the representations made by a Conference of Chambers of Commerce held in Ohristchurch, in the month of January last, in reference to the rates of freight [see No. 190, F.-6, 1901] charged by the Oceanic Steamship Company on cargo for the several ports of the colony. It was a matter of complaint that one port received an advantage over all other ports of the colony of 12s. 6d. per ton, or over 30 per cent., in the rate of freight, and it was urged that a system should be adopted whereby a uniform rate of freight should be charged, at all events to the principal ports of New Zealand, as is done practically by some of the main lines of steamers plying in the colony. It was further urged that that rate should not exceed the rate charged to Sydney. I understand that you were good enough to promise that these representations should be borne in mind in any negotiations relative to the San Francisco mail-service; and the southern Chambers of Commerce are'very anxious*that the matter should not be overlooked. I have, &c, The Hon. the Postmaster-General, Wellington. S. Carroll, Secretary.

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No. 29. Mr. Dunnet, Auckland, to the Secbetaby, General Post Office, Wellington. Oceanic Steamship Company (American and Australian Line), Sib, — Auckland, 4th December, 1901. I have the honour to inform you that I have received a letter from Mr. Spreckels, dated the Bth November, 1901, in which he states that he was unable to cable accepting the Government proposals in re the San Francisco mail-service, for the following reasons : First, because he could not sign a contract which contains terms which conflict with his present contract with the United States; second, because it imposes obligations which are unfair ; third, because he is offered terms on a lower basis than the improved service is entitled to, as compared with the old. When Mr. Spreckels cabled that he could only accept the 10s. sd. rate for letters, Is. for books, and 6d. for newspapers, he was quite agreeable to the minimum of £15,000 and maximum of £20,000 per annum, and considers this a liberal reduction on his part from former requests, made with a feeling that the Government would recognise the justice of paying his company all that it could earn under a poundage system that has been satisfactory to the Government in the past. He feels assured that a three-years trial would convince the Government that his company is justly entitled to the increased business resulting from an improved service, as was recognised by the United States Government in granting the company an increased subsidy. He appreciates the fact that the Oceanic Company is held by some people—he need hardly say, most unjustly— responsible for certain laws of the United States which are objectionable to New Zealand, but he hoped, by meeting the Government in a conciliatory spirit, and accepting terms that he considers below his due, this unreasonable feeling against the Oceanic Company would have been allayed. Mr. Spreckels is aware that the service has been in point of time somewhat unsatisfactory to the Government; but it has been equally so to him, and he has spared no expense to rectify this. It is no small undertaking to drive vessels through all weathers, and under detentions at calling ports due to increased traffic, at a speed of fifteen knots for 7,200 miles. Mr. Spreckels feels he may have been too ambitious in this respect, but it was with the purpose of meeting with the good wishes and cordial support of New Zealand, instead of which he regrets to feel the impression forced on him that he has neither. It is hopeless for the Government to expect that by withholding from the Oceanic Company the fair treatment that is due to it Mr. Spreckels will be obliged to, or could possibly, bring pressure to bear on the Uniced States Government that will influence it in the direction of enacting the legislation desired by New Zealand. It is equally hopeless for the New Zealand Government to expect any other direct communicating line with the United States unless they are prepared to pay as large a subsidy as is paid by the United States. This the New Zealand Government probably cannot do, as the trade does not justify it. What then ? Is it sound business or practical political policy to jeopardize a line of communication that brings New Zealand in direct touch with eighty million people, and which by the Government's admission is the most advantageous route in the matter of time to the Mother country ? Mr. Spreckels is no less aware of the pros and cons of the Vancouver service, and when it offers greater advantages to New Zealand than his company can offer he quite expects the Government to break with his company. Meanwhile he feels that the Government should consider a liberal treatment is due to the best service the colony has. A brief statement of the position from Mr. Spreckels's point of view is this: Under his present contract with the United States, the Oceanic steamers are not obliged to return from Sydney vid Auckland. Supposing this is not done, how will the Government supply the missing link with the United States ? Will the Vancouver steamers depart from Sydney vid Auckland for Vancouver, and leave the Oceanic Company the quicker route direct from Sydney and Brisbane to the United States ? It has been suggested in New Zealand that a steamer could be run from Auckland to Fiji and connect with the Vancouver service there. New Zealand would thus be on a side track instead of the main line. Would this be advantageous to New Zealand, and compatible with the Government's idea of the dignity and importance of a prominent colony ? It is also commonly supposed that the Oceanic Company is obliged to go for ten years to Auckland from the United States by the terms of their contract, but there is a provision in the contract that can be used for their protection if the exigencies of the service and the maintenance of the service demand a change of route. This supposition seems to have influenced some of the members of the New Zealand Parliament in their action, believing that they are sure of the service regardless of their attitude towards the Oceanic Company. While Mr. Spreckels is desirous, on account of present and past associations, to go to some length to retain his present route, it is by no means of vital importance to him to do so. Other routes have advantages to offer the Oceanic Company, where a reasonable certainty, not enjoyed at present with New Zealand, for the future can be assured. Mr. Spreckels still hopes this question will be satisfactorily adjusted. I have, &c, The Secretary, General Post Office, Wellington. Geo. Dunnet.

No. 30. The Secbetaby, General Post Office, Wellington, to the Seceetaby, Chamber of Commerce, Wellington. Suj,— General Post Office, Wellington, 11th December, 1901. I have the honour, by direction, to refer to your letter of the 3rd instant, bringing under notice the representations made by a Conference of Chambers of Commerce held in January last at 2—F. 6,

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Christehurch, in connection with the rates of freight charged by the Oceanic Steamship Company on cargo for the several ports of the colony, and, in reply, to inform you that the matter has not been lost sight of. I have, &c, W. Gray, Secretary. The Secretary, Wellington Chamber of Commerce, Wellington.

No. 31. Mr. Dunnbt, Auckland, to the Secretary, General Post Office, Wellington. (Telegram.) Auckland, 13th December, 1901. Spbbckbls wires proposals accepted, provided in event of dispute over clauses they will be construed consistent with his American contract; and hopes mails will be sent to reach maximum amount. Advise Postmaster-General.

No. 32. The Secretary, General Post Office, Wellington, to Mr. Dunnet, Auckland. (Telegram.) Wellington, 13th December, 1901. I am exceedingly glad to receive your telegram announcing Mr. Spreckels had accepted proposals. I have wired your telegram to Sir Joseph Ward. Meantime, would you advise me at once whether Friday as the day of departure from Auckland is to be substituted for Saturday, and whether Mr. Spreckels prefers to have a day longer for completing the voyage from Frisco to Auckland. These two points are the only ones which require immediate settlement, and I hope you are in a position to reply definitely.

No. 33. Mr. Dunnet, Auckland, to the Secretary, General Post Office, Wellington. (Telegram.) Auckland, 13th December, 1901. " Ventura " will sail 21st, Saturday. Am awaiting instructions re alteration to Friday for sailing and Tuesday for arrival. Have advised both.

No. 34. The Secretary, General Post Office, Wellington (at Oamaru), to Mr. Dunnet, Auckland. (Telegram.) Oamaru, 20th December, 1901. ' . . . . Sir Joseph Ward would like to know from you where resolutions of House are at variance with Spreckels , s contract. Have you heard from him re Friday's sailings? Keply Christchurch.

No. 35. Mr. Dunnet, Auckland, to the Secretary, General Post Office, Wellington (at Christchurch). (Telegram.) Auckland, 20th December, 1901. Do not know where resolutions are at variance with contract. Have not heard anything re Friday sailing. It means altering published time-tables.

No. 36. The Secretary, General Post Office, Wellington (at Christchurch), to Mr. Dunnet, Auckland. (Telegram.) Christchurch, 21st December, 1901. Frisco service and Mr. Spreckels's acceptance : I am desired to say that where resolutions may be at variance with Mr. Spreckels's contract the Postmaster-General will give every consideration to the points of difference, but these should be submitted forthwith. Full use will be made of the service from this end. Am Ito assume that there is to be no change in sailing-days either end? The eighteen days proposed as much in Mr. Spreckels's interest as our own. It is all-important

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that connection should always be made with the Saturday fast boat from New York, and this Mr. Spreckels has, under present running, failed to do. If, however, he is now satisfied that he does not want an extra day, the Postmaster-General no doubt would agree to present time-table being continued. In any case question should be definitely settled before the holidays. Perhaps you will decide to cable Mr. Spreckels.

No. 37. Mr. Dunnet, Auckland, to the Secbetaby, General Post Office, Wellington (at Christchurch). (Telegram.) Auckland, 21st December, 1901. Will cable Spreckels asking where matters are at variance, and will advise alteration of sailing date.

No. 38. Mr. Dunnet, Auckland, to the Secbetaey, General Post Office, Wellington. (Telegram.) Auckland, 24th December, 1901. Just received cable from Spreckels. He says, please send pro formd contract. Will then wire what his objection is. Cannot alter present sailing dates.

No. 39. The Seceetaey, General Post Office, Wellington, to Mr. Dunnet, Auckland. (Telegram.) Wellington, 26th December, 1901. Thanks for wire. I have advised that there will be no change in Frisco time-table. I hope to have draft contract ready in time for next mail.

No. 40. The Seceetaey, General Post Office, Wellington, to Mr. Dunnet, Auckland. (Telegram.) Wellington, 30th December, 1901. In the time-table you have received from Mr. Spreckels, what day is fixed for arrival at Auckland? Is it Monday as at present ? If you have any copies, please send me half a dozen.

No. 41. The Hon. the Peemiee to the Agent-Geneeal. (Telegram.) Wellington, 30th December, 1901. Fb'isco service renewal: Spreckels now accepts terms except where at variance with American contract, and on our agreeing continue present time-table. Latter approved. Advise London Post Office.

No. 42. Mr. Dunnet, Auckland, to the Secbetaey, General Post Office, Wellington, (Telegram.) Auckland, 31st December, 1901. New time-tables not yet to hand. Monday night will be time of arrival. Will send you time-table drawn up here meantime. I wish it was Tuesday morning myself.

No. 43. Messrs. Hendeeson and Macfaelane, Auckland, to the Seceetaey, General Post Office, Wellington. Oceanic Steamship Company (American and Australian Line), Sic, — Auckland, 31st December, 1901. We have the honour to enclose herewith three pro formd time-tables showing the arrivals and departures of Oceanic steamers. . . . Immediately on receipt of the printed time-tables a supply will be sent you. I trust that the enclosed will suffice in the interim. Tours, (fee, Hendeeson and Macfaelane. The Secretary, General Post Office, Wellington

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Enclosure in No. 43. San Francisco Mail-service.—Time-table, 1902.

No. 44. The Deputy Postmaster General, Sydney, to the Secretary, General Post Office, Wellington. Postal and Electric Telegraph Department, Sir, — General Post Office, Sydney, 9th January, 1902. In acknowledging receipt of your letter dated 4th instant [not printed], forwarding corrected copies of the San Francisco time-table for the current year, I have the honour to point out that the steamers vid San Francisco are still leaving Sydney on Tuesday, and not Monday as per table, and the advertisement of steamer-sailings up to Ist April shows Tuesday as the proposed day of departure, and due day of arrival at London as Friday, and not Saturday as in the table received. We will, however, note Saturday as the due day at London, and Thursday from San Francisco, due at Sydney on Friday as per table, for use in future. I have, &c, J. Dalgarno, The Secretary, General Post Office, Wellington. Deputy Postmaster-General.

No. 45. Mr. Dunnet, Auckland, to the Secretary, General Post Office, Wellington. Oceanic Steamship Company (American and Australian Line), Sir, — Auckland, 21st January, 1902. . . . Be pro forma, mail-contract : I shall be pleased to receive this as soon as possible, so that I can study it myself before sending it to Mr. Spreckels, which will enable me to answer any cables he may S6nd after receipt of it. lam going to Tahiti on the 28th instant, and shall be away three weeks. Yours, &c, The Secretary, General Post Office, Wellington. Geo. Dunnet.

No. 46. The Secretary, General Post Office, Wellington, to the Deputy Postmaster-General, Sydney Sir, — General Post Office, Wellington, 24th January, 1902. I have the honour to acknowledge the receipt of your letter of the 9th instant about the San Francisco mail-service time-table for the current year. The fact that the steamers for San Francisco still leave Sydney on the Tuesday, and not Monday, has been embodied, I am glad to inform you, in a later issue of this Department's timetable.

Steamers Leave Arrive Arrive San Francisco. Steamers. Leave San Francisco. Sydney. Auckland. Auckland. Sydney. 1902. Jan. 7 Jan. 28 Feb. 18 Mar. 11 April 1 April 22 May 13 June 3 June 24 July 15 Aug. 5 Aug. 26 Sept. 16 Oct. 7 Oct. 28 1902. Jan. 11 Feb. 1 Feb. 22 Mar. 15 April 5 April 26 May 17 June 7 June 28 July 19 Aug. 9 Aug. 30 Sept. 20 Oct. 11 Nov. 1 1902. Jan. 27 Feb. 17 Mar. 10 Mar. 31 April 21 May 12 June 2 June 23 July 14 Aug. 4 Aug. 25 Sept. 15 Oct. 6 Oct. 27 Nov. 17 Sierra Sonoma Ventura Sierra Sonoma Ventura Sierra Sonoma Ventura Sierra Sonoma Ventura Sierra Sonoma Ventura 1902. Feb. 6 Feb. 27 Mar. 20 April 10 May 1 May 22 June 12 July 3 July 24 Aug. 14 Sept. 4 Sept. 25 Oct. 16 Nov. 6 Nov. 27 1902. Feb. 24 Mar. 17 April 7 April 28 May 19 June 9 June 30 July 21 Aug. 11 Sept. 1 Sept. 22 Oct. 13 Nov. 3 Nov. 24 Dec. 15 1903. 1902. Feb. 28 Mar. 21 April 11 May 2 May 23 June 13 July 4 July 25 Aug. 15 Sept. 5 Sept. 26 Oct. 17 Nov. 7 Nov. 28 Dec. 19 1903. Nov. 18 Nov. 22 Dec. 8 Sierra Dec. 18 1903. Jan. 5 Jan. 9 Dec. 9 Dec. 13 1903. Jan. 3 Dec. 29 1903. Jan. 19 Sonoma Jan. 8 Jan. 26 Jan. 30 Dec. 30 Ventura Jan. 29 Feb. 16 Feb. 20

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As regards the Home arrival, it was proposed to alter this office's time-table to show Friday as the day on which the mail reached London, but seeing that Saturday is the usual day of arrival— though, unfortunately, the mail has lately not always been delivered on that day—it has been kept as the due day. I have, &c, The Deputy Postmaster-General, Sydney. W. Gray, Secretary.

No. 47. The Secretaby, General Post Office, Wellington, to Mr. Dunnet, Auckland. (Telegram.) Wellington, 28th January, 1902. Regbet unable to forward you draft contract before you leave for the Islands.

No. 48. Mr. Dunnet, Auckland, to the Secbbtaby, General Post Office, Wellington. (Telegram.) Auckland, 28th January, 1902. Thanks for wire. Am leaving to-night. Hope you will have pro formd contract ready for " Sonoma" on the Ist February. Have written to Spreckels saying it would go forward with her.

No. 49. Messrs. Henderson and Macfablane, Auckland, to the Sbcbbtaet, General Post Office, Wellington. Oceanic Steamship Company (American and Australian Line), Sm,— Auckland, 3rd February, 1902. Mail contract : We advised Messrs. the J. D. Spreckels and Bros. Company, San Francisco, that we were unable to send them draft of the contract by the " Sonoma," which left here on the Ist instant. We trust that you will be able to let us have it previous to the " Ventura's " leaving here on the 22nd instant. We should consider it a favour to be in receipt of it a day or two prior to the " Ventura's " sailing, so that a copy could be made for file in this office. Yours, &c, Henderson and Macfarlane. The Secretary, General Post Office, Wellington.

No. 50. The Secrbtaby, General Post Office, Wellington, to Messrs. Henderson and Macfablane Auckland. Gentlemen, — General Post Office, Wellington, 15th February, 1902. I have now the honour to forward rough draft of proposed mail-contract between the Postmaster-General and the J. D. Spreckels and Bros. Company, and I shall be obliged if you will, after perusal, send it to Mr. J. D. Spreckels by the outgoing mail. I am not acquainted with the exact terms of the contract between Mr. Spreckels and the United States Post Office, and therefore am unable to determine in what respect the resolutions approved by our House of Representatives last session may be at variance with the contract, as alleged by Mr. Spreckels. The draft I now send you, it will be observed, follows the agreement made with the Union Steam Ship Company in August, 1895, with the addition of the clause fixing passenger and freight rates, from the renewed agreement of April, 1899, and the clause exempting the contract vessels from payment of harbour and dock dues and other harbour rates at the Port of Auckland. Mr. Spreckels, no doubt, will be prepared to fix the tariff at rates, if not actually lower, certainly not higher than those adopted by the Union Steam Ship Company. In any case, the rates to and from Auckland should not be higher than the Sydney rates ; and in this connection I have to direct your attention to the accompanying extract from a letter written by the Secretary of the Wellington Chamber of Commerce in December last, which I hope may receive Mr. Spreckels's earnest and favourable consideration. After perusing the draft contract, you may perhaps favour me with your views. I have, &c, Messrs. Henderson and Macfarlane, W. Gray, Secretary. General Agents for New Zealand, Oceanic Steamship Company, Auckland.

[For Enclosure in No. 50 see No. 28, first paragraph.]

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No. 51. Messrs. Henderson and Macfablane, Auckland, to the Secretary, General Post Office, Wellington. Oceanic Steamship Company (American and Australian Line), Sir,— Auckland, 19th February, 1902. We have the honour to acknowledge the receipt of your letter of 15th instant, covering rough draft of the proposed mail contract, which will be forwarded to Messrs. J. D. Spreckels and Bros, by the mail leaving here 22nd instant. We will also send a copy of extract of letter dated 3rd December, forwarded by the Secretary of the Wellington Chamber of Commerce to the Hon. the Postmaster-General, and will pass on Mr. Spreckels's comments when received. We are, &c, Henderson and Macfablane. The Secretary, General Post Office, Wellington.

No. 52. Mr. Sproul (Messrs. Henderson and Macfarlane), Auckland, to the Secretary, General Post Office, Wellington. Sir, — Auckland, 19th February, 1902. . Your letter of the 15th instant, commenting od the draft of the contract officially forwarded under the same date, is to hand, with thanks. Mr. Dunnet is still away, but I expect he will back to-day or to-morrow. I have glanced over the contract, and enclose herewith a few memoranda [not printed] which I have made against various clauses. Of course, you will recognise in these memoranda that the words " should include " are merely my own ideas, and not in any way expressive of Mr. Speckels's own opinions. Ido not think that he will have any objection to the contract as it stands, as I presume, except for a few particulars governing speed of steamers, &c, the contract is much on the same lines as the last one. Would you kindly, after perusal of my comments, wire either me or Mr. Dunnet if you think your Government would include them, so that in Saturday's mail we could deal intelligently with the matter in our letter to Mr. Spreckels? Thanking you for the many courtesies you have extended to us in this matter, Yours, &c, The Secretary, General Post Office, Wellington. V.- A. Sproul.

No. 53. The Secretary, General Post Office, Wellington, to Messrs. Henderson and Macfarlane, Auckland. (Telegram.) Wellington, 22nd February, 1902. I have yours of 19th re draft San Francisco contract. I reply as under : — Clause 4 : The increased rates, which I presume are those now collected, may be substituted. Would you kindly say whether any of the other rates set out in the draft clause are higher than those now charged by the company. Clause 6: The present contract will not cover the period prior to the 30th November last ; therefore the suggested addition of " taking effect as from the Ist November, 1900," cannot be inserted. Clause 9: Yes, the penalties are the same as in last contract. I assume you do not wish this set out. Clause 10 : As the number of hours appears correct I see no need to amend the clause. Clause 14 : I am afraid the suggested addition could not be made. Government does not control harbour rates, and, as you may remember, the Wellington Harbour Board absolutely refused to free the Port of Wellington to the Vancouver steamers. Although Government has the power to set out an exemption of harbour rates in any mail contract, it would not be likely to do so in the face of determined opposition on the part of the Harbour Board affected. Clause 21 : I see no objection to the addition of the suggested proviso. Clause 24 : This addition may also be made. It is to be understood that my acquiescence is subject to the Postmaster-General's approval. I do not, however, think that he will be likely to take any exception to what I have done.

No. 54. Messrs. Henderson and Macfarlane, Auckland, to the Secretary, General Post Office, Wellington. Oceanic Steamship Company, (American and Australian Line), Sib,— Auckland, 24th February, 1902. We have to thank you for your telegram of 22nd instant, dealing with our comments on the draft contract forwarded by " Ventura's " mail to our head office. We have particularly noted that the Wellington Harbour Board refused to free the Port of Wellington to the Vancouver steamers, which would seem to show that if our steamers happened to call at Wellington at any time they would be treated on the same footing as non-mail-carrying steamers. Our own com-

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ments, as previously stated, are merely " by the way," and we have simply forwarded the contract and asked for instructions. In regard to the passage and freight rates we are now charging, I have asked Messrs. Bannatyne and Co. to send you up the official schedule of fares and freights, in order that you can study at leisure the various rates. Thanking you again for your personal assistance to us in regard to various matters, We are, &c, Hendebson and Macfablane. The Secretary, General Post Office, Wellington.

No. 55. The Secbetaby, Chamber of Commerce, Wellington, to the Hon. the Postmasteb-Genebal, Wellington. Sib, — Wellington Chamber of Commerce, Wellington, 25th February, 1902. I have the honour, by direction, to submit to you the following resolutions which were adopted at a Conference of New Zealand Chambers of Commerce recently held in Wellington, and to bespeak for the same your careful and favourable consideration. Resolved, "That in the opinion of this Conference it is desirable—(«) That all postal contracts be restricted to services carried on under the British flag." [See other resolutions and the reply at Nos. 145 and 146.] I have, &c, The Hon. the Postmaster-General, Wellington. S. Cabboll, Secretary.

No. 56. Messrs. Hendebson and Macfablane, Auckland, to the Hon. the Postmasteb-Genebal, Wellington. Oceanic Steamship Company (American and Australian Line), Sib,— Auckland, 26th February, 1902. We have the honour to submit for your consideration the following suggestion to enable us to get the San Francisco mail-steamers away at 10 o'clock in the morning, instead of at 2 o'clock as at present, so that they could reach Pago Pago during daylight, not being able to enter that port after dark, and thereby losing considerable time. With the mails reaching Onehunga on Saturday morning we do not think it possible, especially in winter time, to get the steamers away earlier than at present. We believe the mail closes in Wellington on Thursday evening, and the mails leave by train for New Plymouth on Friday morning, reaching there the same evening, and on to Onehunga, arriving Saturday morning. 'Would it be possible to run a night train leaving Wellington on Thursday night, reaching New Plymouth on Friday morning; thence on to Onehunga, arriving same evening ? If this is practicable, it would enable us to get the steamers away early, and make sure of catching the fast train to New York to meet the Atlantic steamer. If our surmise in re closing-time is correct, it would not mean closing the Wellington mail earlier. It would be no use making any alterations as long as quarantine regulations are in force, as we would require the mail-steamers to be here at least six hours before sailing-time, and this means their getting here on Friday night from Sydney. However, we most sincerely hope the quarantine will soon be over. Intrusting these matters to your favourable consideration, We have, &c, Hendebson and Macfaelane, General Agents for New Zealand. The Hon. the Postmaster-General, Wellington.

No. 57. Messrs. W. M. Bannatyne and Co. (Limited), Wellington, to the Seceetaey, General Post Office, Wellington. Oceanic Steamship Company (American and Australian Line), Sib,— Wellington, 28th February, 1902. As requested by our Auckland office, herewith we beg to hand you copy of the schedule of fares from Auckland to way-ports and San Francisco, single and return; also, copy of freight rates charged from Auckland. We are, &c, W. M. Bannatyne and Co. (Limited). The Secretary, General Post Office, Wellington,

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No. 58. The Secretaey, General Post Office, Wellington, to Messrs. W. M. Bannatynb and Co. (Limited), Wellington. Gentlemen, — General Post Office, Wellington, 3rd March, 1902. I have the honour to acknowledge, with thanks, the receipt of your letter of the 28th ultimo, forwarding a schedule of the fares by the San Francisco mail-steamers, also copy of the schedule of freight-charges from Auckland to Pago Pago, Honolulu, and San Francisco. I have, &c, W. Gbay, Secretary. Messrs. W. M. Bannatyne and Co. (Limited), Wellington.

No. 59. The Secretaby, General Post Office, Wellington, to Messrs. Hendebson and Macfarlane, Auckland. Gentlemen, — General Post Office, Wellington, 6th March, 1902. I have the honour, by direction, to acknowledge the receipt of your letter of the 26th ultimo, asking whether it could be arranged for the southern portion of the outward San Francisco mails to reach Auckland earlier than at present, so that the mail-steamers might leave at 10 a.m. instead of 2 p m., and thus insure their arriving at Pago Pago during dayiight. In reply, I have to express regret that your proposal to run a night train with the mails from Wellington to New Plymouth on the Thursday could not be entertained. I will, however, refer the question of an earlier despatch to the Chief Postmaster, Auckland, to see whether under existing arrangements it would not be possible to get the steamers away earlier than 2 p.m. I may add that I learn there are not now the difficulties which formerly existed in entering Pago Pago at night, and I assume that when the lighting of the harbour is completed and the wharf finished it will be possible for vessels to arrive and leave after dark. I have, &c, Messrs. Henderson and Macfarlane, W. Gbay, Secretary. General Agents for New Zealand for the Oceanic Steamship Company, Auckland.

No. 60. The Secretary, General Post Office, Wellington, to Messrs. Hendebson and Macfarlane, Auckland. Gentlemen, — Wellington, 14th March, 1902. Adverting to my letter of the 6th instant, in reference to your request that the mailsteamers for San Francisco might leave Auckland at 10 a.m. instead of 2 p.m., I have the honour, by direction, to express regret that, after referring the question of an earlier despatch to the Chief Postmaster, Auckland, the Postmaster-General is unable to see his way to favourably consider your request, as the existing arrangements will not admit of the steamers being despatched with the mails before 2 p.m. I have, &c, Messrs. Henderson and Macfarlane, W. Gray, Secretary. General Agents for New Zealand for the Oceanic Steamship Company, Auckland.

No. 61. Mr. Speoul (Messrs. Hendebson and Macfablane), Wellington, to the Secretaby, General Post Office, Wellington. Oceanic Steamship Company (American and Australian Line), Sir,— Wellington, 16th April, 1902. We have the honour to revert to our interview with the Hon. Postmaster-General and your good self yesterday, and to confirm the various amendments in the draft contract for the conveyance of ocean mails by the steamers of Messrs. the J. D. Spreckels and Bros. Company made by that firm, and submitted by us as general agents for the Oceanic Steamship Company of San Francisco and New Zealand. We take it that the Hon. the Postmaster-General is pleased to agree to the exclusion and inclusion, as the case may be, of all such amendments, with the exception of those amendments dealing with the delay of Oceanic steamers either at San Francisco or at Auckland, and the demurrage to be paid by the New Zealand Government for such delays. With regard to the departure of the Oceanic Steamship Company's steamers from Auckland, we understand that the Hon. the Postmaster-General must have the power to delay any steamer for a period not exceeding twenty-four hours, and that no demurrage for the first twelve hours' delay will be paid, and that demurrage at the ra.te of £5 per hour for each hour after the first twelve hours from scheduled time of departure will be paid. With respect to agreeing to the Postmaster-General's having the power to delay the steamer at San Francisco until such time after the scheduled hour of departure as the British mails can

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be delivered on board, we would now confirm our verbal statement that any such delay at San Francisco would be granted simply through the courtesy of the United States Government, which, according to its contract with the J. D. Spreckels and Bros. Company, has a right to order vessels to sail at the appointed times. Such delays in departures as have already occurred at San Francisco are entirely on the responsibility of the Oceanic Steamship Company, which is not paid anything by the United States or by the New Zealand Government for loss of time and other expenses attending such delay. You will therefore see that it is entirely out of our power, as general agents for the company in New Zealand, and, in fact, it is also out of the power of the company, to include any clause in the contract with your Government that would give the Hon. the Postmaster-General the power to delay the steamers at San Francisco after the scheduled hour of sailing. We will, however, refer the whole question to Messrs. J. D. Spreckels and Bros, and' recommend them to get the permission of the Washington postal authorities to detain the steamers at San Francisco, when necessary, for a reasonable time after the scheduled hour of departure when it so happens that the steamer sailing on her time-table date would leave the English mails to come on to New Zealand by the next sailing, twenty-one days thereafter. We understand that your Government will also take up this question with the Washington authorities, and make request for their agreeing to the New Zealand Government's paying demurrage as herein stated in the event of their consenting to the delay of the steamers at San Francisco. In respect of the letter from the Secretary of the Wellington Chamber of Commerce to the Hon. the Postmaster-General, regarding representations made by the Conference of Chambers of Commerce, held in Christchurch in January, 1901, dealing with the question of freight rates charged by the Oceanic Steamship Company from San Francisco to the southern ports of this colony, the same being 12s. 6d. per ton more than to Auckland, we have the honour to inform you that this rate of 12s. 6d. per ton on general cargo has to be paid by us to the Union Steam Ship Company of New Zealand (Limited), or whichever coastal company carries our transhipments south from Auckland. We may state here as a fact that at the present time English companies trading to New Zealand charge the local ruling rate from their steamers' New Zealand ports of call to such ports in New Zealand as the through cargo requires to be transhipped to. We trade on the same lines, and if a through rate was made to all New Zealand ports we should be giving merchants in the far south and in out-ports preferential treatment, which you will recognise, in the face of it, as unfair. We have the honour to request your reply to this letter, confirming the verbal agreement of yesterday to the changes suggested by Messrs. the J. D. Spreckels and Bros. Company in the draft contract; and remain, Yours, &c, Hbndbeson and Macfablane, General Agents in New Zealand. The Secretary, General Post Office, Wellington.

No. 62. Messrs. Hendebson and Macfaklane, Auckland, to the Seceetaby, General Post Office, Wellington. (Telegram.) Auckland, 21st April, 1902. Eeveeting to conversation about " Ventura " coming alongside, trust this will be granted. Doctor can inspect passengers, and ship be kept 4 ft. off wharf.

No. 63. The Secretary, General Post Office, Wellington, to Messrs. Hendeeson and Macfablane, Auckland. (Telegram.) Wellington, 21st April, 1902. I have just had a conversation with Dr. Mason. He informs me that he is leaving for Auckland to-morrow morning. I told him that I would ask you to see him on Wednesday. Shall be glad if you will do so. He will discuss matter of allowing Frisco steamers to come to wharf, but I gather from him that he is not favourably disposed.

No. 64. The Secbetaey, General Post Office, Wellington, to Mr. Spboul, Auckland. (Telegram.) Wellington, 22nd April, 1902. Deaft contract: our recent interview, and your letter 16th instant: —l fear the draft will not be out of the hands of Solicitor-General in time for outgoing mail, and it would perhaps facilitate matters were I now in a formal way to indicate how far Mr. Spreckels's amendments are likely to be agreed to. The alterations in clauses 1, 2, 3, and £ accepted. The proposed amendment in clause 5 is still under consideration, and I am awaiting information from Marine Department as to its powers for surveying and examining foreign-registered vessels. Ido not think Mr. Spreckels's suggested amendment is sufficient for our purposes. The amendments in clause 6 have been agreed to. With respect to clause 8, the Department is at a serious disadvantage not having copy of contract between Washington Post Office and Messrs. Spreckels. Postmaster-General requires an assurance that the steamers will be detained at San Francisco to await arrival of British mails when late, and, as discussed with the Postmaster-General, first twelve hours' detention should be free, and after that five pounds (£5) an hour. It is the intention to write Washington Post Office 3—F. 6,

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by outgoing mail about detaining steamers whenever British mails are late in reaching San Francisco. Sir Joseph Ward desires to have power to detain vessels, if necessary, for twenty-four hours at Auckland : first twelve hours free, and after that demurrage of five pounds (£5) an hour. Amendments to clause 9 agreed to. The substituted clause for draft clause 10 is accepted ; but here again we are very much inconvenienced through not knowing the provisions of contract with United States. The amendments to clauses 11, 12, 13, and 16 approved, as well as the addition to clause 21. The Postmaster-General will need to have an undertaking from Messrs. Spreckels to provide suitable accommodation for the sorting of mails on the voyage from San Francisco. This, as you know, has been really agreed to by Mr. Spreckels, but the Department should have a letter in proper legal form, failing any reference being made to the matter in the contract itself. I have no doubt position would be facilitated were you to cable Mr. Spreckels, informing him of extent to which his amendments have been accepted, and of the Postmaster-General's views with respect to detention of vessels at Auckland and San Francisco, as well as to powers for examining vessels. You will probably be writing Mr. Spreckels at length respecting your interview with the Postmaster-General and myself, and I would ask you to emphasize the disadvantage we are placed at through not having copy of the United States contract, or the essence of the agreement, as affecting the downward service and conveyance and custody of the mails. To-morrow is unfortunately government holiday.

No. 65. The Secebtaey, General Post Office, Wellington, to Messrs. Hendeeson and Macfablane, Auckland. (Telegram.) Wellington, 15th May, 1902. As you are no doubt aware, " Sonoma's " mail five days late reaching London, and we have just been advised that " Ventura " was day and half late in reaching San Francisco, which will probably mean another four or five days' late delivery in London. The Agent-General is again complaining of irregularities. It is no doubt apparent to you that something must be done to secure greater regularity. I think the matter of sufficient importance for you to cable Messrs. Spreckels, urging them to agree to Friday departure from Auckland, which I understand is strongly supported by Mr. Dunnet and yourself, and not unfavourably entertained by Messrs. Spreckels. You should emphasize the need for this change by letter, and press Messrs. Spreckels to bring into force forthwith. I have no doubt whatever that the Washington Post Office would agree. The fact that the time-table was fixed by the United States postal authorities was the only reason which at one time Mr. Dunnet could urge against the change of the time-table. Do consider this as a really urgent matter, alike in the interest of the Post Office, the public, and the service itself. Am posting you half a dozen prints of draft contract as revised by SolicitorGeneral.

No. 66. Messrs. Hendebson and Macfaelane, Auckland, to the Secebtaey, General Post Office, Wellington. (Telegram.) Auckland, 16th May, 1902. As suggested, am cabling Spreckels strongly recommending Friday sailing-day for Frisco. You are, of course, aware present quarantine regulations detained " Sonoma " nine hours here, also "Ventura." This means Pago is reached at dark, and, for safety of passengers, steamers probably lie outside till daylight. You will remember the points I raised while in Wellington against enforcement of quarantine on mail-steamers. No. 67. The Seoeetaby, General Post Office, Wellington, to the Colonial Postmastee, Suva. Sic, — General Post Office, Wellington, 21st May, 1902. I have the honour to refer to the statements which have been rendered by" your office, advising of the particulars of mail-matter despatched from Fiji to San Francisco by mail-contract steamers during the quarters ended 30th September and 31st December, 1901, respectively, and to inform you that the contract between this Department and the Union Steam Ship Company for the performance of the San Francisco mail-service terminated in November, 1900. Since the 6th December of that year this Department has had an arrangement with the J. D. Spreckels and Bros. Company, of San Francisco, for the performance of the service. The amounts payable to the company for conveyance of mail-matter from Fiji are computed, as before, on the basis of weight, and now at rates as follows : — Up to 30th June, 1901, at the former rates (already paid) : Letters 125., books Is. 6d., newspapers 6d. per pound. From Ist July to 29th November, 1901: Letters 10s. 5d., books Is., newspapers 6d. per pound. From 30th November, 1901: Letters 7s. 6d., books Is., newspapers 6d. per pound. I enclose herewith fresh statements of Fiji correspondence despatched by the San Francisco mail-steamers for the September and December quarters; and a statement in respect of the March quarter, 1902, is also attached. You will observe that there is due to this office the sum of £66 10s. 7d.

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It is proposed to in future render a claim to your Administration annually [altered to " quarterly" in a letter of 11th June] for the cost of the transmission of Fijian mail-matter by the service. I have, &c, The Colonial Postmaster, Suva, Fiji. W. Gray, Secretary.

No. 68. The Secbetaey, General Post Office, Wellington, to Messrs. Henderson and Macfablane, Auckland. (Telegram.) Wellington, 23rd May, 1902. Have you heard, from Mr. Spreckels or Mr. Dunnet about Friday's departure ? Our Agent was unable to meet Mr. Dunnet on his arrival at Frisco, owing to illness.

No. 69. Messrs. Henderson and Macfablane, Auckland, to the Seceetaby, General Post Office, Wellington. (Telegram.) Auckland, 23rd May, 1902. Just received cable from Spreckels, reading, "If Ward desires, we shall arrange sailings Sydney Monday, Auckland Friday, commencing ' Ventura.' Immediate reply required."

No. 70. The Seceetaey, General Pose Office, Wellington, to Messrs. Hendebson and Macfaelane, Auckland. (Telegram.) Wellington, 24th May, 1902. Glad to hear that Spreckels now agrees Friday departure. Commencing with " Ventura's " departure will suit. Would be obliged if you reply to Spreckels Postmaster-General desires the Friday sailing.

No. 71. Messrs. Hendeeson and Macfaelane, Auckland, to the Sbceetaey, General Post Office Wellington. (Telegram.) Auckland, 26th May, 1902. Be sailing of "Ventura" and following steamers: What hour would best suit southern mail arrival? No instructions from San Francisco on this point.

No. 72. The Secbetaby, General Post Office, Wellington, to Messrs. Hendeeson and Macfaelane, Auckland, (Telegram.) Wellington, 26th May, 1902. I do not think sailing can be made earlier than at present, but I should be glad if you would consult the Chief Postmaster. Am I to assume that Friday departure will begin with " Ventura's " sailing next month ?

No. 73. The Secbetaby, General Post Office, Wellington, to Messrs. Hendeeson and Macfablane, Auckland. (Telegram.) Wellington, 27th May, 1902. You will observe from Press telegram from Sydney this morning that altered sailing-days outward Frisco steamers announced as a fact. May I accept this as authentic, so that I may advise our officers and public forthwith ?

No. 74. Messrs. Hendeeson and Macfaelane, Auckland, to the Secbetaby, General Post Office, Wellington. (Telegram ) Auckland, 27th May, 1902. Youb telegrams of yesterday and this morning received. Delayed reply to former waiting to hear hour of departure from Sydney to enable us to fix sailing-hour from Auckland. Commencing with " Ventura," sailing-day from Auckland to Frisco Fridays in lieu of Saturdays. Please accept this as definite. Auckland Postmaster advises two o'clock as sailing-hour would suit, but like to hear from our Sydney office before fixing actual hour of departure.

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No. 75. The Secbetaey, General Post Office, Wellington, to the Managing Dibectoe, Union Steam Ship Company, Dunedin. (Telegram.) Wellington, 27th May, 1902. Beginning with " Ventura's " departure from Auckland on Friday, 27th proximo, San Francisco steamers will sail from Auckland on Friday in place of Saturday. Hope this will result in close connection being regularly made with fast steamer from New York on the Saturday.

No. 76. Messrs. Henderson and Macfablane, Auckland, to the Secbetaby, General Post Office, Wellington. Oceanic Steamship Company (American and Australian Line), Sib,— Auckland, 27th May, 1902. We have the honour to acknowledge the receipt of your telegrams of the 26th and 27th instant. We wired you this morning apologising for the delay in our reply to the former, which, as we said, was due to our waiting to hear from Sydney concerning the hour from that port of the " Ventura's " next sailing. We have also to confirm our advice that, commencing with the " Ventura " from Auckland on the 27th proximo, all Oceanic steamers are now time-tabled to leave this port on the Friday, or the day previous to the sailing-date given in the 1902 time-table. With regard to the sailing-hour from Auckland, we anticipate that it will remain the same as heretofore— viz., 2 p.m. — but will advise you by telegram as soon as we can decide. Trusting that the change in sailing-date will bring about the desired result, namely, the delivery of the New Zealand mails to the Saturday steamer from New York, We have, &c, Hendeeson and Macfaelane. The Secretary, General Post Office, Wellington.

No. 77. The Hon. the Acting-Pbemieb to the Agent-Geneeal. (Telegram) Wellington, 28th May, 1902. Beginning with "Ventura's" departure twenty-seventh proximo, San Francisco steamers will leave Auckland Friday in place of Saturday. Advise Imperial Post Office.

No. 78. Messrs. Henderson and Macfablane, Auckland, to the Secbetaby, General Post Office, Wellington. (Telegram.) Auckland, 29th May, 1902, Eeceivbd cable from Spreckels reading, " We will agree detention not exceeding three days Frisco, twenty-four hours Auckland. Demurrage after first twelve hours at each port five pounds per hour." This practically accords with the revised draft contract forwarded per "Ventura," and I think should allow of the contract being signed at this end and forwarded next mail for signature. Spreckels do not think cable reply to Frisco necessary.

No. 79. The Secbetaby, General Post Office, Wellington, to the Resident Agent for New Zealand, San Francisco. Sib,— General Post Office, Wellington, 30th May, 1902. I have the honour to inform you that it has been arranged with Messrs. the J. D. Spreckels and Bros. Company that, beginning with the " Ventura's " departure from Auckland on the 27th proximo, the San Francisco steamers shall sail from Auckland on Friday instead of Saturday. This change, it is hoped, will permit of the Homeward mails connecting regularly with the fast steamer leaving New York on the Saturday for Great Britain. I have, &c, W. Gray, Secretary. H. Stephenson Smith, Esq., Eesident Agent for New Zealand, San Francisco.

No. 80. The Secbetaby, General Post Office, Wellington, to Messrs. Hendeeson and Macfablane, Auckland. (Telegram.) Wellington, 30th May, 1902. Fe'isco contract and your telegram of yesterday: Under clause 9, Frisco detention ninety-six hours. This important, and I hesitate to recommend Minister to accept three days, as indicated in telegram to you from Spreckels, I think Spreckels should give way.

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No. 81. Messrs. Henderson and Macfaelane, Auckland, to the Secretary, General Post Office, Wellington. (Telegram.) Auckland, 30th May, 1902. Certain Spreckels communicated with Washington previous to making limit of three days' delay Frisco, therefore consider it useless referring it for their further consideration. Positive, however, steamer would wait by courtesy over three days, as inland transit arrival is known to an hour. Trust you can arrange for contract to be signed and forwarded per " Sonoma."

No. 82. The Secretary, General Post Office, Wellington, to Messrs. Henderson and Macparlane, Auckland. (Telegram.) Wellington, 30th May, 1902. Frisco detention : Mr. Spreckels may or ix ay not have communicated with Washington; but, if you can give me an assurance on his behalf that in the event of the mails not arriving under four days the steamers will be detained the additional twenty-four hours, I will recommend the Minister to accept seventy-two in place of ninety-six hours, and ask him to sign two copies of the contract for the purpose of being forwarded by the " Sonoma" for final execution.

No. 83. Messrs. Henderson and Macfarlane, Auckland, to the Secretary, General Post Office, Wellington. Oceanic Steamship Company (American and Australian Line), Sir,— Auckland, 31st May, 1902. Your official wire of the 30th instant places us in a position in which we must again cable Messrs. the J. D. Spreckels and Bros. Company, as we cannot take the liberty of giving you a definite assurance on Mr. Spreckels's behalf that the mail-steamers will wait four days at San Francisco if required. We are perfectly confident, however, that the steamer would wait—as, for instance, if the mails reached Ogden on the Sunday morning the company would be perfectly well aware that they could not possibly reach San Francisco till the Monday, and would certainly not despatch the steamer at 10 o'clock on Sunday morning simply because the seventy-two hours had expired. We sincerely trust that you will consider the question in this light, as from private advice from San Francisco we are aware that the United States Government are always willing to extend the courtesy of a three or four days' delay at San Francisco on such a rare occasion as the English mail would be that time late. To refer the matter again to San Francisco, even by cable, will mean another delay of twenty-one days before the contract can go up for signature, and we feel confident your desire is to facilitate the signing of the contract, provided there are no vital questions yet left unsettled in the revised draft. If you will recommend the Minister to accept the seventy-two hours' delay at San Francisco, we, as agents, will strongly recommend our San Francisco principals to extend the seventy-tw.o to ninety-six hours, should such extension ever be required. After perusal of the foregoing, will you kindly wire us your intentions. Meantime, grateful for your past assistance in connection with this matter, We remain, &c, Henderson and Macfarlane. « The Secretary, General Post Office, Wellington.

No. 84. The Secretary, General Post Office, Wellington, to Messrs. Henderson and Macfarlane, Auckland. (Telegram.) Wellington, 4th June, 1902. Frisco contract, and your letter 31st ultimo : Regret 1 do not see my way to recommend that detention at San Francisco provided for by clause 9 be reduced to seventy-two hours. As, however, you think it important that the contract should be signed by the Minister and forwarded by outgoing mail, this, I think, may be done on understanding that should Mr. Spreckels absolutely decline to accept the ninety-six hours' detention the seventy-two hours may be inserted by him when executing the contract, but without binding the Postmaster-General to agree to the amendment or prevent his reopening the question. Please reply at once.

No. 85. Messrs. Henderson and Macfarlane, Auckland, to the Secretary, General Post Office, Wellington. Oceanic Steamship Company, (American and Australian Line), Sir,— Auckland, 4th June, 1902. We have the honour to acknowledge the receipt of your favour of 30th ultimo [not printed], to which is attached copy of telegrams exchanged between your Department and this firm, dealing

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with the alteration in the day of departure of our steamers from Auckland. We note from a telegram just to hand that the " Sierra " arrived at San Francisco last Monday at 9 a.m., which is a very creditable performance, especially as she was not actually due at that port till 4 p.m. [time-table hour, 6 a.m.]. We have, &c, Henderson and Macfarlane, General Agents for New Zealand. The Secretary, General Post Office, Wellington.

No. 86. The Secebtaet, General Post Office, Wellington, to Messrs. Henderson and Macfablane, Auckland. Gentlemen, — General Post Office, Wellington, sth June, 1902. Referring to previous correspondence, and more particularly to your letter of the 31st ultimo, to my telegram of the 4th instant, and to yours of the same day [not printed]: I have now the honour to forward you two copies of the contract, duly signed by the Postmaster-General, for transmission to Messrs. the J. D. Spreckels and Bros. Company for completion by its representatives empowered to execute such legal documents on behalf of the company. In the event of Messrs. Spreckels declining to sign the contract unless clause 9 is amended by the insertion of " seventy-two" in the place of " ninety-six" hours, it is to be understood that any such amendment shall not be binding on the Postmaster-General, who shall have the right to reopen the question of the detention of the mail-steamers at San Francisco for the British mails, when late. I trust that your personal influence may be used to induce Messrs. Spreckels to sign the contract as it stands, so that it may have the force of law without further delay. I have, &c, Messrs. Henderson and Macfarlane, Auckland. W. Gray, Secretary.

No. 87. Messrs. Henderson and Macfarlane, Auckland, to the Secretary, General Post Office, Wellington. Oceanic Steamship Company (American and Australian Line), Sib,— Auckland, 9th June, 1902.. We have the honour to acknowledge receipt of. your two favours of the sth instant, one enclosing two copies of the mail contract signed by the Postmaster-General, which have been forwarded for execution by Messrs. the J. D. Spreckels and Bros. Company, and the other acknowledging receipt of our letter of the 29th ultimo [No. 136] withdrawing claim for compensation on account of the " Sierra," sailed from San Francisco 9th February last. Commenting on the former, we quite understand that, should the J. D. Spreckels and Bros. Company decline to sign the contract without an amendment in clause 9 the New Zealand Postmaster-General will have the right to reopen the question in respect of the limit of detention of the mail-steamers at San Francisco waiting for the British mails when late. We might add in the same connection that we have urged our principals to sign the contract as it stands, and pointed out in support of our request that the risk of a longer delay than seventy-two hours at San Francisco is very slight. With every hope, therefore, that your copy of the contract will come back duly executed according to its present reading, We have, &c, Henderson and Macfarlane, General Agents for New Zealand. The Secretary, General Post Office, Wellington.

No. 88. Messrs. Henderson and Macfarlane, Auckland, to the Secretary, General Post Office, Wellington. Oceanic Steamship Company (American and Australian Line), Sir,— Auckland, 9th June, 1902. . . . With regard to the hour of sailing in future, our Sydney agents advise us that the steamers will leave their port at 1 p.m. as hitherto, so that the usual sailing-hour from this port—viz., 2 p.m.—will be still adhered to. Yours, &c, Henderson and Macfablane. The Secretary, General Post Office, Wellington.

No. 89. The Secretary, General Post Office, Wellington, to Messrs. Henderson and Macfarlane, Auckland. Gentlemen, — General Post Office, Wellington, 11th June, 1902. I have the honour to inform you that a claim has been made by this office on the Colonial Postmaster, Suva [No. 67], on account of Fijian mail-matter sent to Auckland for transmission by the steamers of the San Francisco service, as from the Ist July, 1901. It is proposed

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to make payment annually of the amount due to your company, so soon as the accounts are settled by the Suva Post Office. I have, &c, Messrs. Henderson and Macfarlane, Auckland. W. Gray, Secretary.

No. 90. Contract foe Conveyance op Ocean Mails. Agreement between the J. D. Spreckels and Bros. Company, of San Francisco, United States of America, and the Postmaster-Geneeal of New Zealand. Articles of agreement made and entered into this thirtieth day of June, one thousand nine hundred and two, between the Honourable Sir Joseph Geoege Ward, the Postmaster-General of the Colony of New Zealand, appointed as such Postmaster-General under " The Post Office Act, 1900," and acting for and on behalf of the Government of the said colony, of the one part, and the J. D. Spreckels and Bros. Company, of San Francisco, United States of America, carrying on business at San Francisco, in the United States of America (hereinafter designated " the Company "), of the other part : Witness that the Company doth, for itself, its successors and assigns (so far as the covenants and agreements hereinafter contained are to be observed and performed by the Company), hereby covenant with the Postmaster-General of the Colony of New Zealand and his successors in office, and the said Postmaster-General doth, for and on behalf of himself as such Postmaster-General, and his successors in office respectively, and the Government of the colony for which he is such Postmaster-General (so far as the covenants and agreements hereinafter contained are to be observed and performed by him or them), hereby covenant with the Company and its successors in manner following, that is to say,— 1. In the construction of these presents the following words and expressions shall mean and include (unless such meaning shall be inconsistent with the context) as follows : — " Postmaster - General " means the Postmaster - General for the time being of New Zealand: " Company " includes the successors and assigns of the Company : " Mails " includes all boxes, bags, or packets of letters, newspapers, books, or printed papers, patterns, and all other articles transmissible by post; also all empty bags, empty boxes, and other stores and articles used or to be used in carrying on the Post Office service : " Mail " means the aggregate of mails to be transmitted at any one" time by any of the vessels for the time being employed in the mail-service under this contract : and " Hours " means hours calculated according to Greenwich time. 2. The Company shall from time to time, and at all times hereafter, during a period of one year and six months, computed from the thirtieth day of November, one thousand nine hundred and one (unless previously terminated in pursuance of any provision in that behalf hereinafter contained), convey all His Majesty's mails which, and all other mails of whatever country or place which, the Postmaster-General shall at any time and from time to time require the Company to convey from Auckland to the ports of Pago Pago, Honolulu, and San Francisco respectively, within the respective times and in manner hereinafter provided for; and, so long as the services (hereinafter referred to as " outward services ") hereby agreed to be performed ought to be performed in pursuance of this contract, shall and will provide and keep seaworthy and in complete repair and readiness for such purpose three good, substantial, and efficient screw steam-vessels of the first class, and fully equal to class 100 Al Lloyd's Eegister, and of not less gross register tonnage than four thousand tons each, constructed of iron, and propelled by first-rate engines of adequate power for the performance of the voyages within the times hereinafter specified, and having spar-decks and large capacity for passengers and cargo, and ample ventilation for passing through tropical latitudes: Provided that, if and as often as any of the three screw steam-vessels aforesaid become disabled through tempestuous weather, or by reason of accident beyond the control of the Company, then it shall be lawful for the Company to provide and equip a screw steam vessel or vessels as substitute or substitutes, capable of performing the voyage in the manner and within the time specified. 3. The steam-vessels to be employed in outward services under this contract shall be always furnished with all necessary and proper machinery, engines, apparel, furniture, stores, tackle, boats, fuel, lamps, oil, tallow, provisions, anchors, cables, and other proper means for extinguishing fire, charts, chronometers, nautical instruments, and whatsoever else may be necessary for equipping the said vessels and rendering them constantly efficient for the performance of the voyages within the times hereinafter specified, and for the service hereby agreed to be performed, and also manned and provided with competent and legally-qualified officers, the master or commander having ample experience in command of screw steam-vessels, and with a sufficient number of efficient engineers, and a sufficient crew of able seamen and other men, and with a competent surgeon ; to be in all respects, as to vessels, engines, equipments, and capacity, subject to the approval of the Postmaster-General or of such other person or persons as he shall at any time or times or from time to time authorise to inspect and examine the same. Full facilities for such inspection and examination shall at all times be given by the company, and no vessel shall be employed or used for the purposes of this contract until approved as aforesaid. Every vessel used in outward services under this contract shall be fitted with refrigerators or ice-chambers, in which fish-ova or other natural productions may be carried or conveyed, and such refrigerators shall be fitted with all necessary appliances and machinery for working and keeping the same effective,

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4. All of such vessels so employed shall each, according to its capacity, carry all the freight and passengers which may be reasonably offered or obtained, and at tariff rates, both as to passengers and freight, not exceeding the rates hereinafter set forth, that is to say,— Passenger Bates. To and from Auckland and Pago Pago and Honolulu— Pago Pago. Honolulu. £ s. d. £ a. d. Saloon, single ... ... ... ... 12 10 0 ... 30 0 0 return ... ... ... ... 20 0 0 ... 45 0 0 Steerage, single ... ... ... ... 610 0 ... 15 0 0 return ... ... ... ... 10 10 0 To and from Auckland and San Francisco— Saloon, single, £40; steerage, £16. „ return, £60; steerage, £30. Second class, single, £25. „ return, £40. Prom and to southern ports of New Zealand and Auckland : Ordinary coastal fares from or to Auckland, less 10 per cent., in addition to above. Freights. Prom Auckland to Pago Pago and Honolulu— Pago Pago. Honolulu. General cargo ... ... 40s. per 40 cubic feet ... 40s. per 40 cubic feet. Vegetables, in cases ... 255. „ ... 255. „ To Auckland from Pago Pago and Honolulu— General cargo ... ... 40s. per 40 cubic feet ... 40s. per 40 cubic feet. Fruits, in cases ... ... 255. „ Auckland to San Francisco— General cargo ... ... ... ... 50s. to 60s. per ton, 40 cubic feet. Skins ... ... ... ... 50s. per ton of 2,0001b. Hides ... ... ... ... 325. 6d. per ton of 2,0001b. San Francisco to Auckland— General cargo ... ... ... ... $8 to $16 per 40 cubic feet. Canned goods ... ... ... ... $8 to $10 „ Salmon ... ... ... ... ... $8 to $9 Hops ... ... ... ... ... $8 to $10 Wheat, flour, &c. ... ... ... ... $6 to $8 per 2,0001b. Bicycles ... ... ... ... ... $7 50 cents and upwards. An additional rate of 12s. per ton to and from main New Zealand ports south of Auckland shall be chargeable, which includes dues and labour at Auckland transhipping : Provided that no discrimination shall be made as regards tariff rates for either freights or passengers in any manner directly or indirectly against any New Zealand port, or against the New Zealand Government railways, or against any New Zealand merchant or shipper. 5. The Company shall at all times maintain all vessels used for outward services under this contract, with their machinery, tackle, and equipment, in first-class condition, as required by Lloyd's Eegistry. 6. The mails shall be conveyed seventeen times in each year (once every three weeks) from Auckland to San Francisco by way of Pago Pago and Honolulu, and the service shall be deemed to have commenced with the despatch of the " Sonoma " from Auckland on the thirtieth day of November, one thousand nine hundred and one, which shall be deemed to be the first appointed day. The vessels respectively employed to convey the mails shall leave the said Port of Auckland on the appointed days (computed as aforesaid), and at such hours on the appointed.days as may from time to time be agreed to between the Postmaster-General and the Company ( or as, in the absence of agreement, may be directed by the Postmaster-General. 7. The company, at its own expense, shall deliver and take the mails to and from the steamers and the shore, at convenient places to be from time to time appointed by the Postmaster-General, in the respective ports from and to which the mails are to be conveyed, and also shall convey the same and the officers having charge of them to and from the steamers and the shore as may be necessary, in suitable boats furnished with suitable coverings for the mails, and properly equipped and manned ; and shall from time to time convey the officers or agents of the Postmaster-General to and from the steamers and the shore at any of the said ports as often as may be necessary in the execution of their duties respectively. 8. If the Postmaster-General or his officers or agents shall in event of emergency deem it requisite for the public service that any vessel should be delayed at Auckland beyond the appointed hour of departure, it shall be lawful for the Postmaster-General or such officers or agents to order such delay for the period specified in the order, not exceeding twenty-four hours, by letter addressed to the commander of the vessel and delivered to him or to any person appearing to be in charge, or left for him at the office of the Company in the port or on board the vessel, three hours at least before the hour appointed for departure, and every such order shall be obeyed by the Company,

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its officers and servants. In every case where a vessel is delayed at Auckland pursuant to such order as aforesaid, demurrage at the rate of five pounds an hour shall be paid to the Company for each hour's delay after the first twelve hours. 9. In order to insure, as far as practicable, the due carrying of the mails from San Francisco to New Zealand under the contract now in force (or any contract in renewal or extension thereof) between the Company and the Government of the United States, the Company shall, with the consent of that Government, delay the departure of any of its vessels from San Francisco for such period as the Postmaster-General directs, not exceeding seventy-two hours after the time of departure fixed by such contract, in order to await the arrival of the mails from London to Australia and New Zealand. Such direction shall be by letter from the Postmaster-General's officer or agent at San Francisco, addressed to the Company, and delivered at its office in San Francisco at least three hours before the hour appointed for the departure of the vessel. In every case where a vessel is delayed at San Francisco pursuant to such direction as aforesaid, demurrage at the rate of five pounds per hour shall be paid to the Company by the Postmaster-General for each hour's delay after the first twelve hours. In the case of each vessel so delayed the demurrage in respect thereof shall be paid at the Treasury in Wellington, or at the Company's office at Auckland, on receipt by the Postmaster-General of advice of the amount payable. 10. If from any cause whatsoever, at any time or times hereafter, one of the vessels for the outward services shall not be at the Port of Auckland, ready to put to sea in due time to perform the outward services hereby contracted to be performed, the Company shall pay as liquidated damages to the Postmaster-General in respect of every mail that shall be delayed by reason of any such default as aforesaid the sum of two hundred pounds, and the further sum of fifty pounds for every successive twenty-four hours which shall elapse between the time at which the mail shall be appointed to leave the port and the time at which the vessel conveying the same shall leave the port, whether such vessel shall be one of those aforesaid or any other vessel which the Postmaster-General shall think fit to employ or to sanction being employed for the purpose : Provided that the Postmaster-General shall have power to remit or reduce any of the sums payable as in this clause mentioned if he shall be satisfied that any such default as aforesaid was attributable to causes over which the Company had no control: Provided also that the maximum amount to be paid by the Company under this clause in respect of such defaults for any one voyage shall not exceed one thousand pounds. 11. The mails shall be safely conveyed from Auckland to San Francisco within three hundred and ninety-six hours, this time to be calculated from the time appointed for the departure of the mail. In case of the loss of any mails after delivery to vessel at Auckland, the Company shall, with all possible despatch, at its own cost, do all such acts and take all such measures as may be reasonably expected to be done and taken to recover the mails so lost. And the Company shall be liable for all damage or injury to mails, from whatsoever cause that may arise or happen, excepting fire, the act of God, perils of the seas, or enemies of the flag. 12. For the outward services under this contract the Postmaster-General will pay to the Company at the following rates: Letters at seven shillings and sixpence per pound ; books, packets, &c, one shilling per pound; and newspapers sixpence per pound, on the net weight of the mails from New Zealand conveyed: Provided that the minimum amount payable to the company under this clause shall not be less than fifteen thousand pounds, nor shall the maximum amount be more than twenty thousand pounds per annum. 13. In respect of each voyage on outward services, the Company shall pay to the PostmasterGeneral as liquidated damages, and not as a penalty, the sum of four pounds for every hour in excess of the number of hours prescribed in clause 11 as the maximum number to be occupied in conveying the mails, unless such excess of time is caused by any event beyond the Company's control, and all such sums may be deducted by the Postmaster-General from any payments due to the Company under this contract: Provided that no sum shall be payable by the Company under this clause in respect of any specified voyage unless the period of actual delivery of the mails at San Francisco exceeds the time of delivery provided by this contract by forty-eight hours ; and provided also that the Postmaster-General may remit any payment which in his opinion should not be enforced. 14. The sums stipulated to be payable to the Company under this contract shall be in full satisfaction for all services rendered thereunder, whether in respect of the outward services or otherwise howsoever, and the amount payable in respect of each voyage on outward services shall be payable to the Company at the Treasury in Wellington, or at the Company's office at Auckland, immediately after the receipt of the advice by the return mail from San Francisco of the due delivery of the mail there. 15. During the continuance of this contract, and so long as the same shall be faithfully carried out by the Company, no charge for harbour dues, dock dues, or other rates shall be made or levied under " The Harbours Act, 1878," or any amendment thereof, or under any special Act in that behalf, at the Port of Auckland for any of the steam-vessels employed in the outward services under this contract, and all such vessels shall be exempt therefrom accordingly. 16. The Company shall at its own cost provide, to the satisfaction of the Postmaster-General, on board all vessels employed in the outward services under this contract, proper, safe, and convenient places of deposit for the mails, with locks, keys, and secure fastenings; and every such place of deposit shall be rendered and kept vermin-proof. 17. The Company shall also at its own cost provide, to the satisfaction of the PostmasterGeneral, all necessary and suitable accommodation, including lights, for the purpose of sorting and making up the mails on board the several vessels employed in the outward services under this con4—F. 6,

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tract, and, on being required to do so by the Postmaster-General, shall at its own cost erect or set apart in each of the said vessels on the main deck a separate and convenient room for such purposes ; and all such furniture, lamps, fittings, and other conveniences shall be from time to time cleansed and kept in repair, and the oil for the lamps supplied by the servants of and at the cost of the Company. The master or commander of each of the sa.id vessels shall also, if required, provide assistance for conveying the mails between the mail-room and the sorting-room, and also render such other assistance as may from time to time be needed, without charge. 18. If the Postmaster-General shall think fit to intrust the charge and custody of the mails to the master or commander of any vessel to be employed in the outward services under this contract, and iti all cases where the officer or other person appointed to have charge of the mails shall be absent to the knowledge of the master or commander of such vessel, such master or commander shall, without any charge, take due care of, and the Company shall be responsible for the receipt, safe custody, and delivery of, the said mails at the several appointed places in the respective ports as part of the services hereby contracted to be rendered. The master or commander shall also make the usual Post Office declaration, and furnish such journal, returns, and other information, and perform such other services in relation to the care and delivery of such mails, as the Postmaster-General or his officers shall from time to time reasonably require. 19. The Company and all commanding and other officers in charge of the vessels employed under this contract shall at all times punctually attend to the orders and directions of the Post-master-General or his officers or agents as to the mode, time, and place of landing, transhipping, delivering, and receiving the mails, subject to the special provisions herein contained, and so far as such orders and directions are reasonable, and consistent with the safety of the vessels. 20. The Company shall at its own cost provide suitable first-class accommodation, including a cabin or state-room for the exclusive use of a mail officer or agent for the Postmaster-General and for one assistant, or, if need be, two assistants, for such Postmaster-General on board each of the vessels employed under this contract, who shall be at liberty to use such accommodation as may be required for the performance of their duties; and every such officer, agent, and assistant shall be victualled by the Company as chief-cabin passengers without charge either for their passages or victualling; and whilst the vessel stays at any port, excepting the Ports of Auckland and San Francisco, to or from which the mails are conveyed, every such officer, agent, and assistant shall be allowed to remain on board, and shall be victualled as aforesaid. 21. Every such mail officer, agent, and assistant shall be recognised and treated by the Company, its officers and agents, as the agent of the Postmaster-General, and as having full authority in all cases to require a due and strict performance of this contract: Provided that no such agent, officer, or assistant shall have power to control or interfere with any master, commander, or officer in the performance of his duty; and every such agent, officer, and assistant shall be subject to all general orders issued by the master or commander for the good order, health, and comfort of the passengers and crew, and the safety of the vessel. 22. With the consent of the United States Government, the provisions of the six last preceding clauses hereof shall, mutatis mutandis, extend and apply to the mails from San Francisco to New Zealand, and the vessels employed in conveying the same, under the contract referred to in clause 9 hereof. 23. In case of any great or habitual non-performance or non-observance of this contract, or of any of the covenants, matters, or things herein contained, and on the part of the Company, its officers, agents, or servants, or any of them, to be observed or performed, whether there be or be not any penalty or sum of money payable by the Company for any such nonobservance or non-performance, it shall be lawful for the Postmaster-General, if he shall be of opinion that the Company is not bond fide carrying out the provisions herein contained, and he shall so think fit (notwithstanding there may or may not have been any former non-observance or non-performance of this contract), by writing under his hand, to determine this contract without any previous notice to the Company or its agents. And the Company shall not be entitled to any compensation in respect of such determination, and such determination shall not deprive the PostmasterGeneral of any rights or remedies to which he would otherwise be entitled by reason of any nonobservance or non-performance of any of the provisions herein contained : Provided always that such habitual non-performance or non-observance of this contract has been duly pointed out to the Company or its Auckland or San Francisco agents, and reasonably prompt and effective steps have not been taken by it or them to have the provisions of this contract properly carried out. 24. All notices or directions which are hereby authorised to be given to the Company, its officers, servants, or agents, may be delivered to the master or commander of any of the said vessels, or other officer or agent of the Company in the charge or management of any vessel employed in the performance of this contract on board such vessel, or left for the Company on board such vessel, or at the Company's office at Auckland or San Francisco, and any notices or directions so given or left shall be binding on the Company. 25. It shall be lawful for the Postmaster-General by writing under his hand, at any time and from time to time, to delegate all or any of the powers vested in him by virtue of this contract to such person or persons as he may think fit. 26. If the Company shall refuse or wilfully neglect to carry out the services hereby provided for, or any of them, according to the true intent and meaning of these presents, then, irrespective of any other liability it may thereby incur, it shall forfeit and pay to the PostmasterGeneral as liquidated damages, and not as a penalty, the sum of three thousand pounds,

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27. All and every the sums of money hereby stipulated to be paid by the Company shall be considered as liquidated or ascertained damages, whether any damage or loss shall have or shall have not been sustained, and may be set off" by the Postmaster-General against any moneys payable to the Company under or by virtue of these presents, or may be enforced by the Postmaster-General as a debt due, with full costs of suit at his discretion : Provided always that the payment by the Company of any sums of money for any neglect or default in the observance or performance of the covenants or agreements herein contained shall not in any manner prejudice the rights of the Postmaster-General to treat such defaults as a non-observance or nonperformance of this contract on the part of the Company. 28. If any dispute, question, difference, or controversy shall arise between the PostmasterGeneral and the Company touching these presents, or any clause or thing herein contained, or the construction thereof, or any matter in any way connected with these presents or the operation hereof, or the rights, duties, or liabilities of the Postmaster-General or of the company in connection with the premises, then and in every or any such case the matter in difference shall be referred to arbitration in manner hereinafter mentioned, and the award of the arbitrator or the arbitrators, or the umpire, appointed as hereinafter mentioned, as the case may be, shall be binding and conclusive in every respect. 29. Unless the Postmaster-General and the Company shall concur in the appointment of a single arbitrator, each party, on the request of the other party, shall nominate and appoint an arbitrator, to whom such dispute, question, difference, or controversy shall be referred; and every appointment of an arbitrator shall be made on the part of the Postmaster-General under his hand, and on the part of the Company under its corporate seal, and such appointment shall be made in duplicate, and be delivered, one part to the other party and the other part to the arbitrator on the part of the party by whom the same shall be made ; and after any such appointment shall have been made neither party shall have power to revoke the same without the consent of the other, nor shall the death of either party operate as a revocation ; and if for the space of fourteen days after any such dispute shall have arisen, and after a request in writing, in which shall be stated the matters required to be referred to arbitration, shall have been served upon the PostmasterGeneral, or given to the Company, or left for it at its last-known office or place of business in Auckland, by the one party on the other party, to appoint an arbitrator, such last-mentioned party fail to appoint an arbitrator, then, upon such failure, the party making the request and having appointed an arbitrator may appoint such arbitrator to act on behalf of both parties, and such arbitrator may proceed to hear and determine the matters which shall be in dispute, and in such case the award or determination of such single arbitrator shall be final. 30. If, before the matters so referred shall be determined, any arbitrator appointed by either party die or become incapable, the party by whom such arbitrator was appointed, his successors in office, or successors or assigns, may nominate and appoint in writing some other person to act in his place; and if for the space of fourteen days after notice in writing from the other party for that purpose he fail to do so, the remaining or other arbitrator may proceed ex parte ; and every arbitrator so to be substituted as aforesaid shall have the same powers and authorities as were vested in the former arbitrator at the time of such his death or disability as aforesaid. 31. Where more than one arbitrator shall have been appointed, such arbitrators shall, before they enter upon the matters referred to them, nominate and appoint by writing under their hands an umpire to decide on any such matters on which they shall differ, or which shall be referred to him ; and if such umpire shall die or become incapable to act, they shall forthwith after such death or incapacity appoint another umpire in his place, and the decision of every such umpire on the matters so referred to him shall be final. 32. If in either of the cases aforesaid the said arbitrators shall refuse, or shall for fourteen days after the request of either party to such arbitration neglect, to appoint an umpire, the Governor for the time being of the Colony of New Zealand shall, on the application of either party to such arbitration, appoint an umpire ; and the decision of such umpire on the matters on which the arbitrators shall differ, or which shall be referred to him, shall be final. 33. If, when a single arbitrator shall have been appointed, or shall be proceeding ex parte under any of the provisions herein contained, such arbitrator shall die or become incapable to act before he shall have made his award, the matters referred to him shall be determined by arbitration in the same manner as if no such arbitrator had been appointed. 34. If, where more than one arbitrator shall have been appointed, either of the arbitrators refuse or for fourteen days neglect to act, the other arbitrator may proceed ex parte, and the decision of such other arbitrator shall be as effectual as if he had been the single arbitrator appointed by both parties. 35. If, where more than one arbitrator shall have been appointed and where neither of them shall refuse or neglect to act as aforesaid, such arbitrators shall fail to make their award within three calendar months after the day on which the last of such arbitrators shall have been appointed, or within such extended time (if any) as shall have been appointed for that purpose by both such arbitrators under their hands, the matters referred to them shall be determined by the umpire to be appointed as aforesaid, and the umpire shall make his award within three calendar months after the time when his duties shall commence, or within such extended time (if any) as shall have been appointed for that purpose by the umpire under his hand. 36. The said arbitrator or arbitrators, or their umpire, may call for the production of any document in the possession or power of either party which they or he may think necessary for determining the question in dispute, and may examine the parties or their witnesses on oath, and administer the oaths necessary for that purpose. 37. The cost of every such arbitration and of the award shall be in the discretion of the arbitrator, arbitrators, or umpire, who may direct to, and by whom, and in what manner the same or any part thereof shall be paid.

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38. The arbitration shall take place and be conducted at Wellington, and the arbitrator or arbitrators, or the umpire, as the case may be, shall deliver his or their award in writing to the Postmaster-General, who shall retain the same, and shall forthwith, on demand, at their own expense, furnish a copy thereof to the Company, and shall at all times, on demand, produce the said award, and allow the same to be inspected or examined by the Company, or any person appointed by it for that purpose. 39. Any submission to arbitration may be made a rule of the Supreme Court of New Zealand on the application of the Postmaster-General or the Company. In witness whereof the Postmaster-General hath hereunto set his hand and seal, and the Company hath hereunto caused its common seal to be affixed, the day and year first above written. Signed, sealed, and delivered by the said Joseph George Ward,' as Postmaster-General of New Zealand, in the presence ° f ~ W. Gbay, J. G. Wakb. (1.5.) Secretary, Post and Telegraph Department. The common seal of the J. D, Spreckels and Bros. Com- \ J. D. Speeckels akd Bros. pany, of San Francisco, was hereunto affixed in the pre-I Company. sence of — Fbedk. S. Samuels. f John D. Speeokels, President. (Seal of the company.)

INCIDENTS AND TEANSIT IN THE UNITED STATES, ETC.

No. 91. The Resident Agent for New Zealand, San Francisco, to the Seceetaey, General .Post Office, Wellington. Sic, — Resident Agency for New Zealand, San Francisco, 27th April, 1901. I have the honour to acknowledge receipt of your cable reading [No. 156, F.-6, 1901], to which I replied [No. 157, F.-6, 1901], which I now confirm. Upon receipt of your cablegram I made inquiries from Messrs. Spreckels and Company, to afford them an opportunity to reply. Their manager stated that the delay in arrival of the " Sierra" at this port was occasioned by the disablement of one of her engines, which compelled the voyage to be accomplished with one engine only, which, added to the late departure from Sydney, caused a five days' later arrival than the time-table date. In respect to the "Ventura," they claim that the strike of the coal-passers prevented the steamer taking on board enough coal to last through the voyage, and that upon arrival at Auckland the steamer was detained some twenty-four hours in quarantine, and also prevented from taking additional coal, so that upon arrival at Honolulu they were compelled to wait thirty-two hours for the purpose of procuring enough coal to complete the voyage to San Francisco, causing a late arrival here of forty-eight hours Through the late arrival here by five days of the "Sierra" the connections with the s.s. "Campania" at New York on the 9th and with the "Germanic" on the 18th were not accomplished, the mails remaining at New York until the departure of the " Umbria " on the 16th February, the latter vessel only reaching Liverpool on the 24th February. The " Ventura's " late arrival caused the misconnection at New York with the " Servia " on the 13th April, the mails arriving at New York on the 15th and remaining there until the departure of the s.s. " Majestic " on the 17th, only reaching Liverpool on the 25th April. It will be seen that, in order to accomplish the fulfilment of the mail-schedule as printed, it is imperative that the Pacific steamer must reach San Francisco in time to catch the night express for New York at the latest. Messrs. Spreckels inform me that they think further delays caused by protracted voyages on the Pacific will not be experienced in the future, now that the new boats are in running-trim ; but, as the " Sonoma," now in the colonies, is reported to have disabled one of her engines, it is not improbable that at least one more delay will be experienced. I have, &c, H. Stephenson Smith, Resident Agent. The Secretary, General Post Office, Wellington.

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No. 92. The Eesident Agent for New Zealand, San Francisco, to the Secretary, General Post Office, Wellington. Sir, — Eesident Agency for New Zealand, San Francisco, 3rd May, 1901. I have the honour to acknowledge receipt of your communication of the Ist April, with enclosures [No. 148, F.-6, 1901]. The contents thereof are noted for future guidance. The only difficulty I foresee in respect to the mode for detaining steamers at this port in case of delay is that the knowledge of the delay does not reach us sometimes until almost the hour for the departure of the steamer, when there may not be time to receive instructions from Washington. I have, &c, H. Stephbnson Smith, Eesident Agent. The Secretary, General Post Office, Wellington.

No. 93. The Eesident Agent for New Zealand, San Francisco, to the Secbetaby, General Post Office, Wellington. Sib, — Eesident Agency for New Zealand, San Francisco, 3rd May, 1901. . . . The " Sierra" did not manage to reach here until Tuesday morning at 8, and, as the express left at 10, it looked hopeless that any connection could be made, as the vessel did not get alongside until 9.30 a.m. However, through the exertions of the San Francisco officials, who did some remarkably smart work, and the assistance of Messrs. Spreckels in influencing the Southern Pacific Eailroad officials, we succeeded in delaying the express thirty-seven minutes, and thus effected the connection. As the " Lucania" was to leave New York at 2 p.m. on Saturday, and the mails were only due at New York at 2.15 p.m., I took the matter up with the Cunard Company, and think we could have arranged the connection. By an unfortunate accident to the express, however, some ten hours after its departure, all our hopes were crushed and our good work rendered futile, as the mails were delayed on the Sierra Nevada Mountains until taken up by the night express, which will only land our mails in New York on Sunday morning, so that, as there is nothing scheduled transatlantic until Wednesday, the final arrival will again be quite late and be a source of dissatisfaction. lam of the opinion that the new Spreckels boats are unable to perform the time-table, which should be rearranged so as to give a reasonable prospect of success. ... I have, &c, H. Stephenson Smith, Eesident Agent The Secretary, General Post Office, Wellington.

No. 94. The Agent-General to the Hon. the Premier. Westminster Chambers, 13, Victoria Street, London, S.W., 23rd May, 1901. (Memorandum.) San Francisco Mail. Eepebking to my memorandum of the 26th April last [No. 155, F.-6., 1901], I beg to transmit herewith copy of correspondence, by which it will be seen that I directed the attention of the New York postal authorities to the desirability of sending the New Zealand mails, on their arrival in New York, by such steamers as would be likely to give the earliest delivery in this country. Walter Kennaway, for the Agent-General. The Hon. the Premier, Wellington.

Enclosure 1 in No. 94. The Secretary to the Agent-Genebal to Messrs. E. W. Cameron and Co., New York. Dear Sirs,— 13, Victoria Street, S.W., 26th April, 1901. I am directed by the Agent-General to acknowledge the receipt of your letter of the 11th instant [not printed], and to thank you for kindly giving instructions that messages as to the New Zealand mails leaving New York should be sent as soon as possible after the mail leaves. I am further directed to request the favour of your taking an opportunity of directing the attention of the postal authorities in New York to the fact that the mails which were sent by the s.s. " Majestic " were not delivered in London until 5 p.m. on the 25th instant, whereas if they had been sent by the s.s. " Deutschland," which the Agent-General understands left New York some time after the " Majestic,' they would have been delivered in London during the morning of the 25th instant, which I need hardly point out would have been a considerable advantage to the recipients. The Agent-General feels sure that the New York postal authorities desire to expedite the delivery of mails so far as they possibly can, and that they would willingly use their own discretion in order that the mails shall be forwarded by the steamers that have proved themselves to be the fastest boats. I am, &c, Messrs. E. W. Cameron and Co., New York. Walteb Kennaway.

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Enclosure 2 in No. 94. Messrs. B. W. Cameron and Co., New York, to the Agent-General. Sib,— New York, 14th May, 1901. We have to acknowledge the receipt of your communication of the 28th ultimo regarding despatch of New Zealand mails from New York. We have taken the matter up with the postal authorities in New York, and expect to receive a communication from them on the subject very shortly, a copy of which we will forward to you. As you remark, we know that the Postmaster here is extremely anxious to make a good record in the despatch of foreign mails, and that the matter will receive his hearty support. We are, &c, The Agent-General for New Zealand. E. W. Cameron and Co.

Enclosure 3 in No. 94. Messrs. E. W. Cameron and Co., New York, to the Agent-General. New York, 15th May, 1901. Sir, — New Zealand Mails. Eeferring to our letter of yesterday's date, we now have pleasure in enclosing copy of a communication received from the New York Post Office this morning relative to despatch of New Zealand mails from this port. You will observe that the matter has been referred to the Superintendent of Foreign Mails at Washington, whose remarks on the subject are embodied in the letter of the Postmaster of New York. Commending the same to your attention, We are, &c, The Agent-General for New Zealand. E. W. Cameron and Co.

Sub-enclosure in Enclosure 3 in No. 94. The Postmaster, New York, to Messrs. E. W. Cameron and Co., New York. New York Post Office, Foreign Branch, 14th May, 1901. Gentlemen, —■ New Zealand British Mails. Eeferring to your letter of the 6th instant, relative to the forwarding of the New Zealand mails to Great Britain, I have to inform you that the matter of holding the New Zealand and also the New York mails for the " Deutschland " was referred to the Superintendent of Foreign Mails, Washington, D.C., and this office has been instructed in the matter as follows, viz. : — " The question raised as to future despatches will receive careful consideration when future issues of the schedule are prepared for the printer. It may be well to add, however, that unless the probabie advantage to be gained by holding the mails for despatch by a certain steamer is quite material, that course will hardly be followed, as the steamer scheduled for the later date might be postponed after the steamer scheduled for the earlier date had sailed, thereby seriously delaying the despatch and delivery of the mails which could have been despatched by the steamer sailing on the earlier date. The Department endeavours to despatch the mails by the most expeditious means available ; but there will, of course, be instances occasionally in which the desired result is not accomplished. Very respectfully, C. van Cott, Postmaster.

No. 95. The Eesident Agent for New Zealand, San Francisco, to the Secretary, General Post Office, Wellington. Sir, —■ Eesident Agency for New Zealand, San Francisco, 15th June, 1901. I have the honour to acknowledge the receipt of your cablegram of the 14th May [not printed] (received during my absence in the Eastern States), about repairs to the " Sonoma " and mail-agents' movements through non-connection with " Mariposa." This cable did not appear to require a reply. Mr. Isbister remained at Honolulu with both his assistants, and I presume was enabled to handle the mail on its arrival at Honolulu. I am also in receipt of your communications of the 29th and 30th April [Nos. 159 and 162, F -6,1901], the first in connection with the reported delay of a train in December last, and the latter with the delay to a bag of mail from London in April last. In regard to the delays in the overland * transit, I regret to state that they are still of constant occurrence, and serious delay to the through service is the result. The delays hitherto have been, I understand, on the Union Pacific line, but it is now claimed chat the Union Pacific Company has now completed its improvements on the transcontinental route, and in future delays on that portion of the route should cease. I sincerely trust that this may be the case, as, now that the Pacific service is running in such an unsatisfactory manner, every possible hour saved on the overland transit is of vital consideration. I have, &c, H. Stephenson Smith, Eesident Agent. The Secretary, General Post Office, Wellington.

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No. 96. The Resident Agent for New Zealand, San Francisco, to the Secretary, General Post Office, Wellington. Sic, — Eesident Agency for New Zealand, San Francisco, 17th June, 1901. The mails brought by the " Sonoma " did not leave New York until the Thursday following arrival here, and the " Fiirst Bismarck," which conveyed them, did not arrive in England until the morning of the 13th instant, or thirteen days late. The " Ventura" got here on Tuesday morning, and only by prompt work of the railway mail-service were we enabled to catch the 10 o'clock express, which gives us a " fighting chance " to catch the "Campania" on Saturday. The Cunard people have promised me to do everything possible, but the connection is not yet assured. I took the opportunity of my recent visit to New York to interview all the managers of the steamship lines out of New York, on the subject of possible calls upon them in cases of close connections. They all expressed their desire to help us whenever possible. The Cunard Company (owning the Saturday steamers) especially signified its intention of doing all in its power to facilitate our connection with its steamers at New York, Mr. Vernon Brown promising me that whenever it was possible they would wait for our mails. In fact, my visit has brought me in much closer touch with the steamship companies; and in future I shall feel less hesitation in calling upon their good services when is required. I have just received a telegram from the Cunard Company, giving the unpleasant news that the " Campania " waited up to the last moment but was obliged to leave without the mails, the train being one hour and a half late. After all our trouble and rush this is very disappointing, and will probably cause a three or four days' delay at New York and a corresponding late delivery in England. I hear that part of the delay in the overland transit was caused by a breakdown of the engine on the Burlington route between Omaha and Chicago. I have, however, asked the Railway service to furnish me with a report of the cause or causes of the delay. The mails ex " Dmbria," bound for the colonies, will, I expect, arrive on Wednesday night, but, as Messrs. Spreckels have now decided not to leave after dark, it will be 10 a.m. on Thursday, at earliest, before they leave here. . . . 19th : I am just advised that the " Ventura's " mail, English portion, left New York yesterday by the " Lahn " (a slow steamer of the North German Lloyds), and that the Irish portion left this morning by the " Oceanic." I fear both will be badly late. I have, &c, H. Stephenson Smith, Resident Agent. The Secretary, General Post Office, Wellington.

No. 97. The Secretary, General Post Office, Wellington, to the Resident Agent for New Zealand, San Francisco. Sib, — General Post Office, Wellington, 3rd July, 1901. I have the honour to acknowledge the receipt of your letter of the 27th April last, with reference to the recent delays in the service between here and San Francisco. It is hoped that Messrs. Spreckels Bros, may be correct in suggesting that we have experienced almost the last of the delays on the Pacific. Of this, however, lam doubtful. The irregular running has been productive, as already stated, of the greatest public inconvenience, both here and in London, and has discredited the route to such a degree as will take it years to recover from. In the absence of any contract the Department is helpless in the matter, which makes the position, from a postal point of view, the more aggravating. I have also received your letter of the 3rd May, on the subject of the mode of detaining the steamers when the overland mail is late in reaching San Francisco. I have, &c, H. Stephenson Smith, Esq., W. Gray, Secretary. Resident Agent for New Zealand, San Francisco.

No. 98. The Hon. the Postmaster-General, Wellington, to the Secretary, General Post Office, London. Sir,— General Post Office, Wellington, 19th July, 1901. I have the honour to inform you that the Mail-agent by the last voyage of the " Sonoma" reports the short receipt at San Francisco of a bag of mail, London to Fiji, of Bth June, which was noted on the through waybill to San Francisco as having failed to reach Chicago. The Washington office has been requested to make inquiries into the failure, and to send a copy of the explanation to you. I have, &c, W. Gray, for the Postmaster-General. The Secretary, General Post Office, London.

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No. 99. The Secretary, General Post Office, Wellington, to the Colonial Postmaster, Suva. Sib,— General Post Office, Wellington, 19th July, 1901. In confirmation of the report made to you by the Mail-agent of the "Sonoma" on her last voyage, I have the honour to formally advise you of the short receipt at San Francisco of one bag of mail from London to Fiji, which was entered on the through waybill to San Francisco as not having reached Chicago. The Washington Post Office has been asked to inquire into the failure. I have, &c, The Colonial Postmaster, Suva, Fiji. W. Gray, Secretary.

No. 100. The Secretary, General Post Office, Wellington, to the Superintendent of Foreign Mails, Washington. Sir,— General Post Office, Wellington, 19th July, 1901. I have the honour to inform you that the Mail-agent on the last voyage of the " Sonoma" reports the short receipt at San Francisco of a bag of mail from London to Fiji, which was noted on the through waybill to San Francisco as having failed to reach Chicago. Will you be so good as to have the necessary inquiries made as to the failure, and advise me of the result ? I should be obliged if you would forward to the Secretary, General Post Office, London, a copy of your reply. I have, &c, The Superintendent, Office of Foreign Mails, W. Gray, Secretary. Post Office Department, Washington, D.C.

No. 101. The Hon. the Premier to the Agent-General. Sir,— Premier's Office, Wellington, 23rd July, 1901. Eeferring to my cablegram of the 19th March last [No. 145, F.-6, 1901], asking you to request the Imperial Post Office to send the North Island mails by Brindisi only in the first week after the San Francisco mail had been despatched, I have now the honour to" enclose copy of a complaint from Messrs. Upton and Company, Auckland, regarding delay to their newspapers, which delay would be obviated were the mails forwarded as suggested in my cablegram. I shall be obliged if you will bring the complaint under the notice of the Imperial Post Office. I have, &c, J. G. Ward, for the Premier. The Hon. W. P. Eeeves, Agent-General for New Zealand, London.

Enclosure in No. 101. Messrs. Upton and Co., Auckland, to the Chief Postmaster, Auckland. Sib,— Auckland, 9th July, 1901. Eeferring to our letter on the subject of transmission of newspapers from London to Auckland, and your reply thereto of the 13th February [not printed], we beg to draw your attention to the fact that the practice complained of still continues, and instead of receiving two dates of English papers by each San Francisco mail only one arrives, while the older date does not reach Auckland for several days, and sometimes a week, later. This is most annoying to the public, and as the remedy is very simple we hope you will use your influence to have the matter put right. We are, &c, The Chief Postmaster, Auckland. Upton and Co.

[Extract from Messrs. Upton and Co.'s letter dated 13th February, 1901: "By the last two San Francisco mails we have received only one date of English papers, instead of two as under the four-weekly service. This means that the issues of the papers for the week before the dates sent vid Frisco do not reach us for some days after the later dates are received."]

No. 102. The Agent-General to the Hon. the Premiee. Westminster Chambers, 13, Victoria Street, London, S.W., Sir,— 23rd July, 1901. I beg to enclose herewith copy of a letter from the Imperial Post Office relating to the payment for mails from this country despatched to Sydney from San Francisco on the 21st November last. I shall be glad to receive, for transmission to the Imperial Post Office, the information for which that Department asks. I have, &c, The Hon. the Premier, Wellington, W, P. Eeeves,

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Enclosure in No. 102. The Secbbtaey, General Post Office, London, to the Agent-Geneeal. Sib,— General Post Office, 19fch July, 1901. With reference to your letter of the Bth March last [Enclosure 2 in No. 143, F.-6, 1901], and other correspondence respecting the mail-service between San Francisco and New Zealand, I am directed by the Postmaster-General to inform you that, according to information received from the United States Post Office, the voyage of the 21st November last from San Francisco to Sydney was not performed under the new contract, but by a non-contract steamer. In these circumstances I am to inquire whether the arrangement between the New Zealand Government and the steamship company formerly performing the service was extended to include the voyage in question, as in that case payment for the mails from this country despatched to Sydney from San Francisco on the 21st November is due to the New Zealand Post Office. I am, &c, The Agent-General for New Zealand. H. Buxton Foeman.

No. 103. The Secbetaby, General Post Office, Wellington, to the Resident Agent for New Zealand, San Francisco. Sib,— General Post Office, Wellington, 23rd July, 1901. I have the honour to acknowledge the receipt of your letter of the 15th ultimo, on matters connected with'the San Francisco service. On the occasion on which Mr. Isbister only proceeded as far as Honolulu from this end, he, in anticipation of the want of proper sorting accommodation on the " Mariposa," had a rough set of pigeon-holes, &c, constructed and placed Qn board the vessel on her arrival at Honolulu. With the aid of his two assistants he was enabled to sort the whole of the mail before reaching Auckland. I note that it is stated that the recent delays which have taken place in Connection with the transport of the mails across the United States of America have occurred on the Union Pacific Railroad, but that since certain improvements have been effected on that line further detentions would not happen. I hope this may be the case, but I fear we have not seen the last of these delays. I have, &c, W. Geay, Secretary. H. Stephenson Smith, Esq., Resident Agent for New Zealand, San Francisco.

No. 104. The Secbetaby, General Post Office, Wellington, to the J. D. Spbeckels and Beos. Company, San Francisco. Gentlemen, — General Post Office, Wellington, 25th July, 1901. In reference to your request of the 16th April last [No. 151, F.-6, 1901], that Mail-agents be instructed to furnish you with weights of mails on arrival at San Francisco, and to my reply of the 29th idem, I beg now to explain that, as the Mail-agent does not open the bags, the weights of mails from Auckland for way-ports, Pago Pago or Honolulu, will not be included, but will be supplied from this office. I have, &c, W. Gbay, Secretary. Messrs. the J. D. Spreckels and Bros. Company, San Francisco.

No. 105. The Resident Agent for New Zealand, San Francisco, to the Secbetaby, General Post Office, Wellington. g IE) Resident Agency for New Zealand, San Francisco, 30th July, 1901. I have the honour to acknowledge the receipt of your communication of the 3rd instant, adverting to the numerous delays experienced in the transit of the trans-Pacific mails, and expressing your hopes of an improvement being noticed in the future. I sincerely trust that you will not be disappointed, as undoubtedly the present almost uniform delay seriously impairs the value of the service as a mail-service. You will no doubt by this time have received information that the last mail per " Mariposa," notwithstanding the early departure from New Zealand, only arrived here on Tuesday morning, too late to connect with the 10 a.m. express, and consequently with the " Lucania "on Saturday from New York. The "Kaiser Wilhelm der Grosse " is scheduled to leave New York to-day, and the mails will therefore probably reach Southampton on the sth or 6th proximo, at the best two days late. The last Homeward mails, which missed the " Etruria," left New York by the " St. Paul," and arrived at Southampton on the 17th, four days late. * I have, &c, H. Stephenson Smith, Resident Agent. The Secretary, General Post Office, Wellington. 5—F. 6,

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No. 106. The Resident Agent for New Zealand, San Francisco, to the Secbetaby, General Post Office, Wellington. Sib, — Eesident Agency for New Zealand, San Francisco, 30th July, 1901. I have the honour to enclose for your information the explanation of the railway mailservice officials [not printed] of the delay to the through mails in the endeavour to make a connection with the s.s. " Campania "at New York on the loch June. The accidents reported in this case caused the detention of the mails at New York three days, and a final arrival four days late in England. There does not appear to be anything to be said or any redress procurable. Our mails seem destined to experience most unfortunate mishaps. Be kind enough to have the enclosed papers returned to me when read. I have, &c, H. Stephenson Smith, Eesident Agent. The Secretary, General Post Office, Wellington.

No. 107. The Secbetaby, General Post Office, Wellington, to the J. D. Spreckels and Beos. Company, San Francisco. Gentlemen, — • General Post Office, Wellington, Ist August, 1901. In continuation of my letter of the 25th ultimo, I have the honour to inform you that the weights of closed mails conveyed from Auckland by your company's vessels to Pago Pago, Apia, and Honolulu will be embodied by this office in future monthly weight-statements to be supplied you. The arrears accruing from the commencement of the present arrangement with your company for the performance of the San Francisco mail-service will be included in the next statement rendered. I have, &c, W. Geay, Secretary. Messrs. the J. D. Spreckels and Bros. Company, San Francisco.

No. 108. The Seceetaey, General Post Office, Wellington, to Messrs. Buens, Philp, -and Co., Sydney. Gentlemen, — General Post Office, Wellington, Ist August, 1901. I have the honour to enclose herewith copy of letter from this office to Messrs. the J. D. Spreckels and Bros. Company, San Francisco, about rendering statements of weights of closed mails conveyed by the San Francisco mail-steamers from Auckland to Pago Pago, Apia, and Honolulu. I have, &c, Messrs. Burns, Philp, and Co., Sydney. W. Geay, Secretary.

No. 109. The Resident Agent for New Zealand, San Francisco, to the Seceetaey, General Post Office, Wellington. Sic, — Resident Agency for New Zealand, San Francisco, 20th August, 1901. I have the honour to acknowledge the receipt of your communication of 23rd July. . . . The delays previously noted in the Chicago connection still continue, but, as the mails now never arrive in time at this port, it has not affected our Atlantic connection. I anticipate from three to four days' delay again this time through the late arrival of the " Sonoma." The Union Pacific and the Southern Pacific Railroads now having passed under one management, I sincerely trust an acceleration of time on the western section of the overland transit may be realised in the near future, as it is rumoured that the tracks will be put in such condition that faster time can be maintained. . . . I have, &c, H. Stephenson Smith, Resident Agent for New Zealand. The Secretary, General Post Office, Wellington.

No. 110. The Seoeetaey, General Post Office, Wellington, to the Resident Agent for New Zealand San Francisco. Sic, — General Post Office, Wellington, 3rd September, 1901. I have the honour to acknowledge the receipt of your letter of the 30th July last, enclosing the explanation of the railway officials in the matter of the delay to the through mails in connection with their anticipated despatch by the s. s. " Campania " from New York on the 15th June. I note that accidents were responsible for the detention of the mails at New York for three days, causing their final arrival four days late in England. Papers are returned herewith. I have, &c, W. Geay, Secretary. H. Stephenson Smith, Esq., Resident Agent for New Zealand, San Francisco,

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No. 111. The Hon. the Peemieb to the Agent-General. Sic, — Premier's Office, Wellington, 10th September, 1901. I have the honour to acknowledge the receipt of your letter of the 23rd July last, enclosing copy of one from the Imperial Post Office, asking whether the new San Francisco mailservice included the voyage of the 21st November last from San Francisco to Sydney, seeing that the trip was undertaken by a steamer employed in the previous service. In reply, I have to inform you that the arrangement between this Government and the former contractors did not include the voyage in question. It is true that the running was overtaken by the " Mariposa," a vessel which was employed under the Union Steam Ship Company's contract, but this Department understands that she was engaged as a substitute for the " Sierra." The late contract terminated with the voyage of the 4th October from San Francisco, and with that of the 29th idem from Auckland. I have, &c, J. G. Waed, for the Premier. The Hon. W. P. Beeves, Agent-General for New Zealand, London.

No. 112. The Besident Agent for New Zealand, San Francisco, to the Secretary, General Post Office, Wellington. Sic, — Eesident Agency for New Zealand, San Francisco, 10th September, 1901. I have the honour to report that the " Ventura," conveying the Homeward mails from the colonies, did not reach this port until 7 p.m. on the 3rd instant, too late to connect with the 6 p.m. express for the east; but mails went forward at 10 a.m. on the'4th. The " Campania " was appointed to leave New York at 12 (midday) on Saturday, the 7th. I immediately communicated with the Cunard Steamship Company and the various railway mail-service officials en route, in an endeavour to hold the " Campania " for the 1.30 p.m. train at New York. The Union Pacific train, however, was delayed in arrival at Council Bluffs, and the connection appeared hopeless. Messrs. J. D. Spreckels and Company, at this juncture, arranged with the Lake Shore Company to send a special train from Chicago on arrival of the mails at that point, and succeeded in overtaking the 8.30 a.m. fast mail from Chicago at Toledo, and the mails arrived at New York at 10 a.m. on Saturday, thus effecting a connection with the " Campania," which left New York at midday according to time-table, and there is every probability of a fast through trip being accomplished. In connection with this matter, I have much pleasure in informing you that the management of the Chicago, Burlington, and Quincy Railroad running from Council Bluffs to Chicago, recognising the importance of the connection of the mails at Chicago, I believe, voluntarily, put on a special train from Omaha, which enabled the Lake Shore special to leave Chicago in time to effect the overtaking of the fast mail. It affords me much pleasure to report this action of the Burlington Eailroad Company, who are entitled to the best thanks of the Department for their grasp of the situation, and of the timely assistance rendered. I have expressed the thanks of the New Zealand Government for their courtesy in rendering this most important and effectual assistance. I have, &c, H. Stephenson Smith, Eesident Agent. The Secretary, General Post Office, Wellington.

No. 113. The Agent-Geneeal to the Hon. the Premier. Westminster Chambers, 13, Victoria Street, London, S.W., Sic,— 11th October, 1901. Eeferring to your letter of the 23rd July last, I beg to transmit herewith copy of correspondence with the London General Post Office, by which it will be seen that the Post-master-General declines to make any alteration in the present arrangements as regards the route by which the mails for New Zealand are forwarded. I have, &c, W. P. Beeves. The Hon. the Premier, Wellington.

Enclosure 1 in No. 113. The Secretary to the Agent-General to the Secretary, General Post Office, London. Sir,— 13, Victoria Street, S.W., 3rd September, 1901. Eeferring to my letter of the 20th March last [Enclosure 2 in No. 150, F.-6, 1901], pointing out that the mail vid Italy, leaving London in the week before the mail via San Francisco, reaches the North Island of New Zealand one or two days after the arrival of the succeeding San Francisco mail, I am directed by the Agent-General to bring under your notice copy of a

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complaint from Messrs. Upton and Co., Auckland, regarding delay to their newspapers, which delay would be obviated were the North Island mails forwarded via Italy only in the first week after the mails vid San Francisco leave London, the San Francisco service being made available for the other mails for that part of New Zealand. I am, &c, The Secretary, General Post Office. Walter Kennaway.

Enclosure 2 in No. 118. The Secretary, General Post Office, London, to the Agent-General. Sir,— , General Post Office, E.C., 17th September, 1901. With reference to your letter of the 3rd instant, respecting the mail-service with New Zealand by way of San Francisco, I am directed by the Postmaster-General to inquire whether you are yet in a position to furnish him with the details of the working of that service as compared with the service by way of Suez, which were asked for in the letter from this office of the Bth of March last [Enclosure 2 in No. 142, F.-6, 1901] . These details are essential to the formation of a correct judgment on the question whether this Department could properly consent to the proposal that mails for the North Island of New Zealand should be sent by the route of Suez only in the first week after the regular despatch by the route of San Francisco. I am, &c, The Agent-General for New Zealand. H. Buxton Forman.

Enclosure 3 in No. 113. The Secretary to the Agent-General to the Secretaey, General Post Office, London. Sic, — 13, Victoria Street, S.W., 25th September, 1901. I am directed by the Agent-General to acknowledge the receipt of your letter of the 17th instant, inquiring whether he can furnish you with details of the working of the San Francisco mail-service as compared with the service by way of Suez, and in reply to say that the particulars you require are given in the monthly statements forwarded direct to your office by the General Post Office at Wellington, New Zealand. In case these statements have not reached your office, the Agent-General will be glad to furnish copies of the same from January last to the beginning of July. I am,&c, The Secretary, General Post Office. Walter Kennaway.

Enclosure 4 in No. 113. The Secretary, General Post Office, London, to the Agent-General. Sir,— General Post Office, E.C., 10th October, 1901. With reference to your further letter of the 3rd ultimo, respecting a proposal that the mails for places in the North Island of New Zealand, at present despatched from this country by way of Suez in the week preceding a despatch of mails by way of San Francisco, should be kept back for transmission by the San Francisco route, I am directed by the Postmaster-General to inform you that the monthly returns furnished by the New Zealand Post Office have been examined in order to ascertain in what way the proposed alteration would have,affected the arrival of mails in the colony during the quarter ended the 30th June last. It has been found that the mails for Auckland and Wellington despatched hence on the 19th April and the 31st May would have been delivered sooner under the proposed arrangement, but that those for Auckland despatched on the 29th March, the 10th May, and the 21st June, and those for Wellington despatched on the 10th May and the 21st June, would have been delayed. In the case of the mail of the 29th March for Wellington, there seems to have been no difference between the two routes in the time of arrival. These results do not seem to the Postmaster-General to be such as would justify him in interfering with the present arrangements. I am, &c, The Agent-General for New Zealand. H. Buxton Forman.

No. 114. The Secretaey, General Post Office, Wellington, to the J. D. Spreckels and Bros. Company, San Francisco. Gentlemen, — General Post Office, Wellington, 15th October, 1901. I have the honour to inform you that Mr. fl. Stephenson Smith, Besident Agent in San Francisco, has reported that you kindly arranged with the Lake Shore Eailroad Company to send a special train from Chicago on arrival of the " Ventura's " mails at that point, thus securing the arrival of the mails at New York in time to connect with the " Campania," which sailed on the 7th ultimo, and enabling them to be delivered in London on due date. Your action has been brought under the notice of the Postmaster-General, who desires me to tender you his best thanks for arranging the special train.

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The delay which arose in connection with the landing of the mails by the " Ventura" at San Francisco suggests the importance of some change being made in the quarantine regulations whereby the mails would be permitted to be put ashore on the arrival of the steamer and before the Health Officer's examination, provided there were no disease on the vessel and that she had not sailed from or touched at an infected port, and that a declaration to this effect were n ade at the time by the captain to the mail-officer. Such a practice exists in this colony, and I am of opinion that serious delays to the mails would be avoided were something of the kind adopted by the health authorities of San Francisco. I should be glad to know whether you consider it possible to bring about a change in the methods of the Health Officer's practice as indicated. I have requested Mr. Smith to see you in the matter. I have, &c, W. Gray, Secretary. Messrs. the J. D. Spreckels and Bros. Company, San Francisco.

No. 115. The Secbetaey, General Post Office, Wellington, to the Eesidbnt Agent for New Zealand, San Francisco. Sib,— General Post Office, Wellington, 16th October, 1901. I have the honour to acknowledge the receipt of your letter of the 10th ultimo, notifying the late arrival at San Francisco of the " Ventura's" mails, and their connection with the " Campania " at New York with the assistance of special trains for a portion of the journey through the United States. The action of Messrs. Spreckels Bros, and the Chicago-Burlington-Quincy Eailroad Company in arranging special trains is much appreciated by the Postmaster-General, who acknowledges your promptness in suitably thanking the management. I am writing Messrs. Spreckels Bros, thanking them for arranging for the special from Chicago to Toledo, which enabled connection to be made with the " Campania" and the mails to be delivered in London on due date. I would add that the incidents connected with the delay in getting the "Ventura's" mails on shore at San Francisco suggest the importance of some change being made in the quarantine regulations whereby the landing of the mails would be permitted on the arrival of the steamer and before the Health Officer's examination, provided there were no disease on the vessel and that she had not sailed from or touched at an infected port, and that a declaration to this effect were made at the time by the captain to the mail-officer. Such a practice exists in this colony, and I am of opinion that serious delay to the mails would be avoided were something of the kind adopted by the health authorities of San Francisco. I shall be glad if you will endeavour to bring about a change in the direction indicated, in co-operation with Mr. Spreckels, to whom I have mentioned the matter. I have, &c, W. Gray, Secretary. H. Stephenson Smith, Esq., Eesident Agent for New Zealand, San Francisco.

No. 116. Messrs. Hendeeson and Macfaelane, Auckland, to the Seceetaey, General Post Office, Wellington. Oceanic Steamship Company (American and Australian Line), Sic— v Auckland, 22nd October, 1901. A propos of the fast run of the " Ventura" hence on 17th August last to San Francisco, I have now pleasure in enclosing herewith a pamphlet describing in detail the transcontinental carriage of the New Zealand mails, which will no doubt interest you. I also have pleasure in enclosing a permanent pass to board Oceanic steamers at this -port, and trust that in the near future you will have an opportunity of using it. I have, &c, Hendeeson and Macfaelane. The Secretary, General Post Office, Wellington.

Enclosure in No. 116. A Eecoed Eun aceoss the Ameeican Continent : a Eace with the Austealian Mails. The San Francisco Chronicle of the 6th, 7th, and Bth September devotes considerable space to the fastest run ever made across the American Continent with the colonial mails, which left Sydney on the 13th August, and Auckland on the 17th August, per Oceanic Steamship Company's A. & A. liner E.M.S. " Ventura." It remarks, — " A world's mail record is being beaten by several days between Australia and Liverpool by way of the United States. The most wonderful sprint of the journey was made yesterday by an American locomotive darting eastward out of Chicago ... in pursuit of the regular "mail flier that had a tremendous start of one hour and a half. . . . On Monday, the " Ventura," one of the new Pacific greyhounds of the Oceanic Steamship Company, arrived here after a fast trip from Australia with the colonial mails; but owing to quarantine and Customhouse regulations she was delayed in the harbour all night before inspections were made and the vessel docked. Hence despatch was delayed until Tuesday. Then John D. Spreckels, president of the Oceanic Steamship Company, called upon Carleton C. Crane, Pacific Coast agent of the New York Central

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lines. He asked if it would be possible to have those Australian mails reach New York in time to go out Saturday noon on the great steamship "Campania" for Liverpool. It meant great extra speed somewhere; but there might be a chance to do it. Crane immediately wired to W. B. Jerome, general agent at Chicago of the New York Central lines, tersely putting the proposition before him. Jerome got into hurried communication with the Lake Shore people. . . . Back came the reply to Crane in San Francisco : they would do as he had suggested. They would receive the oncoming mail at Chicago and fling it into a waiting special and force the running-rate until they should overhaul the regular flier, no matter how far it might be in advance. " At 8.30 o'clock yesterday morning the mail-train sped out of Chicago on its swift trip toward New York. At 9 o'clock the Australian mail had not yet arrived from the West. At 10 o'clock it came in. Special mail-wagons were at the station ready to tear across town with it to the Lake Shore starting-point. There it was flung into the cars of the special charger, and in another moment the great engine was getting off the mark and away on the long sprint of the new relay. One of the largest and fastest locomotives in the New York Central's service had been selected for the effort. Then the New York Central officials waited anxiously for the telegrams of progress. It was an unseen but thoroughly understood race. . . . Here in San Francisco, Carleton C. Crane was as eager as the officials in Chicago and in New York, for he had suggested the plan. ... As Pacific Coast agent of the New York Central lines he was naturally familiar with its chain of roads—a wonderful system of 12,000 miles, made up of Michigan Central, the Lake Shore and Michigan Southern, the Big Four route, the Boston and Albany, the Pittsburg and Lake Erie, and the Lake Erie and Western Eailroads. "' We have caught up on that first big lead,' said Crane delightedly. This was accomplished at Toledo, a distance of 244 miles without a stoppage of any kind, the mail transferred, and arrived in New York three minutes ahead of time, or twenty-four days and fifteen minutes from Sydney. As the ' Campania ' left New York at noon yesterday, the mail will reach London on the 13th September—less than thirty days from Sydney, and less than twenty-six days from New Zealand."

No. 117. The Agent-Genebal to the Hon. the Pbemier. Westminster Chambers, 13, Victoria Street, London, S.W., Sib,— 23rd October, 1901. I duly received your cablegram (copy enclosed) of the 9th instant, relating to the San Francisco mail-service. The contents of the cablegram were at once communicated to the Imperial Post Office; and a letter in reply received to-day states that instructions have been given for mails from this country for New Zealand to be forwarded in the usual way, as you request, pending the settlement of the question of the renewal of the contract for the mail-service between New Zealand and San Francisco. Copies of my letter to the Imperial Post Office, and of the reply from that office, are enclosed. I have, &c, The Hon. the Premier, Wellington. W. P. Beeves.

[For Enclosure 1 see No. 15.]

Enclosure 2 in ISlo. 117. The Secretary to the Agent-General to the Secretary, General Post Office, London. Sir,— 13, Victoria Street, S.W., 10th October, 1901. I am directed by the Agent-General to inform you that he has received a cablegram from his Government stating that the question of renewal of the contract for the mail-service between New Zealand and San Francisco will be submitted to the New Zealand Parliament next week, and instructing him to request you in the meantime to continue to send the mails by that route as usual. I am, &c, The Secretary, General Post Office. Walter Kennaway.

Enclosure 3 in No. 117. The Secretary, General Post Office, London, to the Agent-General. Sir,— General Post Office, E.C., 22nd October, 1901. I am directed by the Postmaster-General to acknowledge the receipt of your letter of the 10th instant, stating that the question of the renewal of the contract for the mail-service between New Zealand and San Francisco is about to be submitted to the Colonial Parliament, and requesting that in the meantime mails from this country for New Zealand may be forwarded by that route in the usual manner. In reply I am to inform you that the necessary instructions have been given in the matter. I am, &c, The Agent-General for New Zealand. H. Buxton Forman.

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No. 118. The Eesident Agent for New Zealand, San Francisco, to the Secketaby, General Post Office, Wellington. Sib, — Eesident Agency'for New Zealand, San Francisco, 11th November, 1901. I have the honour to acknowledge the receipt of your communication of the 16th October, in connection with the arrival of the " Ventura" at this port on 2nd September. I note you approve of my action in, conveying the thanks of the Department to the management of the Chicago, Burlington, and Quincy Eailroad, in connection with their running of a special train from Omaha, enabling a connection to be made with the " Campania." I note that you think it desirable that I should, in connection with Messrs. Spreckels Bros., endeavour to influence the quarantine authorities at this port to waive all possible technicalities to expedite the landing of the colonial mails. You will probably recognise that it is extremely difficult to arrange any modification of the United States quarantine regulations, the quarantine officer in charge residing at Angel Island, some distance from this port. As he has no public telephone connection, it is extremely difficult to get at this gentleman. I have, however, in conjunction with Mr. Hug (secretary of Messrs. Spreckels Bros.), arranged to have a meeting with the quarantine officer when next he should visit this city, so that we may talk the matter over and endeavour to enlist his interest and secure his QO-operation in the direction desired. I would say, however, that the quarantine authorities appear disposed to assist us in every way compatible with their instructions, and assisted us materially upon the arrival of the "Ventura" last time. This steamer arrived at this port at 4 o'clock in the afternoon, and it was only by the assistance of the quarantine and Customs officers and by especially smart work in effecting a transfer at the dock that we were enabled to connect with the 6 o'clock overland train that night, the result being that the mails reached New York in time to connect with the " Dmbria "on Saturday last. lam sorry a faster steamer was not scheduled to leave New York on this date, but I do not anticipate over twelve hours' delay at the other end. I beg to acknowledge the receipt of the following telegram on the 19th ultimo : " House last night approved.renewal Frisco service by thirty-five to twenty-eight votes," &c. [No. 18.] I have, &c, H. Stephenson Smith, Eesident Agent. The Secretary, General Post Office, Wellington.

No. 119. The J. D. Spbeckels and Bbos."Company, San Francisco, to the Secbetaby, General Post Office, Wellington. Oceanic Steamship Company, No. 327, Market Street, San Francisco, Sib,— 13th November, 1901. We have the pleasure to acknowledge receipt of your favour of the 15th ultimo, the contents of which have had our attention. We note your suggestion in regard to change in the quarantine regulations whereby the mails may be permitted to be put ashore on the arrival of the steamer at this port. We have talked over the same with Mr. Smith, and have had the matter up with the quarantine officer, and, while nothing definite has as yet been arranged, we do not think there will be any delay in landing the mails in the future. We had the assistance of both the quarantine officer and the Customs authorities in the prompt landing of the mails which arrived on the last trip of the present steamer, and they were put ashore directly the steamer reached the wharf, which enabled them to go forward by the regular overland train the same evening, connecting with the fast steamer at New York. We have no doubt that this courtesy will be extended to us on all future occasions. Yours, &c, J. D. Spbeckels and Beos. Company, The Secretary, General Post Office, Wellington. General Agents.

No. 120. ■ The Hon. the Premieb to the Agent-Geneeal. Sib, — Premier's Office, Wellington, 27th November, 1901. I have the honour to acknowledge the receipt of your letter of the 11th ultimo, transmitting copy of correspondence with the Imperial Post Office about the proposal to send the North Island mails by Brindisi only in the first week after the San Francisco mail had been despatched. I note that the Postmaster-General declines to make any alteration in the present arrangements as regards the route by which the mails for New Zealand are forwarded. In reply, I beg to inform you that the matter will again be brought under notice should the mail deliveries by the San Francisco service at this end show a marked improvement. I have, &c, J. G. Waed, for the Premier, The Hon W. P. Eeeves, Agent-General for New Zealand, London,

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No. 121. The Resident Agent for New Zealand, San Francisco, to the Secbetaby, General Post Office, Wellington. Sir, — Eesident Agency for New Zealand, San Francisco, 2nd December, 1901. I have the honour to acknowledge the receipt of your communications of the 21st October [No. 19] and 7th of November [No. 25], and enclosures. I note the conditions under which the Government- have been authorised to arrange a contract with Messrs. Spreckels and Bros, of this city for the continuation of the conveyance of mails from the colony for the United Kingdom via San Francisco. These resolutions appear to me to be reasonable, and should, I think, appeal to the contractors The Hansard report of the debate has been read with much interest. In connection with the acceptance of the contract on the basis of the resolutions referred to, I would say that, as the date of the expiration of the old arrangement had arrived, I, at the request of the Mail-agent, cabled you to ascertain whether Messrs. Spreckels and Bros, had signified their acceptance or otherwise of the proposition, and have your reply intimating that no confirmation of the proposition had yet been received from the Oceanic Steamship Company [No. 27]. I have not had any communication, either written or oral, on the matter from Messrs. Spreckels and Bros., so that here we are entirely in ignorance of the state of the case. I have, &c, • H. Stephenson Smith, Resident Agent for New Zealand. The Secretary, General Post Office, Wellington.

No. 122. The Hon. the Pbemieb to the Agent-Geneeal. Sib, — Premier's Office, Wellington, 13th December, 1901. I have the honour to acknowledge the receipt of your letter of the 23rd October last, forwarding copies of your letter to the Imperial Post Office and the reply thereto, in connection with the despatch of mails to this colony by way of Sap Francisco pending settlement of the question of renewal of the contract. I have, &c, J. G. Wabd, for the Premier. The Hon. W. P. Reeves, Agent-General for New Zealand, London.

No. 123. The Resident Agent for New Zealand, San Francisco, to the Seceetaey, General Post Office, Wellington. Sic. — Resident Agency for New Zealand, San Francisco, 6th February, 1902. Your long and interesting letter [not printed] per " Sierra," in re Spreckels , s contract, is to hand, and the contents have been read with interest. It is true that the lengthening of the smoke-stacks of the Oceanic steamers appears to have added considerably to the speed of the steamers, and they are coming into port on schedule time when all things are favourable in the way of weather. But they appear not to have any reserve power to counteract any heavy adverse weather. The " Sierra" got here on Monday too late to connect with the morning express, but by extreme good luck her mails caught the " Qmbria " on Saturday. You will be surprised, however, not to get any notice of the " Sierra's " departure until late this time, as the Atlantic steamer, the " Saxonia," a slow boat, did not get to New York until Tuesday afternoon instead of Saturday. Of course, the Atlantis weather has been frightful for the past month, and that, coupled with the mails being upon a sixteen-knot boat, has thrown the schedule entirely out of gear. The " Siferra, "if not further delayed, will get away about midday on Sunday. As the United States mails, I believe, arrived here in time to go forward on timetable date, we were confronted with a rather serious proposition. Messrs. Spreckels, who had arranged to make some repairs on the " Sierra " at Sydney, were extremely anxious to leave on receipt of the United States mails, and telephoned me that they did not see how they could hold the steamer for so long as it appeared necessary at that time. I thereupon wired to Mr. Brooks at Washington explaining the situation and the probable delay, and a reply came to the postal authorities instructing them to ask Messrs. Spreckels to hold the steamer, and at the same time directing that Ibe informed of their action. In the meantime Messrs. Spreckels notified me—l think, before they could have heard from Washington—that they held the steamer, and at the same time asked me whether the New Zealand Government would not make them an allowance for the expense entailed on them by the detention. That, of course, I declined to give an opinion upon, although I think, considering that they have no contract for outward carriage, the incident might perhaps be a matter for consideration . . The mails per "Ventura," which went across by the "Saxonia" on the 11th January, are reported to have arrived at Liverpool on the 20th, which I presume was some time late. I fancy the " Campania" is undergoing overhaul, hence the use of the slow " Saxonia " on this line. Very severe weather is now being experienced all over the United States, and even in California it is quite stormy. It is rumoured that the Canadian Pacific Company is going to considerably accelerate its overland express in the near future—l think, making Montreal in four days. But Ido not know how

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much of this reduced time will affect the Pacific section. lam going to look into the matter in a few days, and if I can get anything authentic will advise you, as it may be important if any connection with Vancouver terminal is determined upon later on ... I.have, &c, H. Stephenson Smith, Besident Agent.

No. 124. The Besident Agent for New Zealand, San Francisco, to the Secretary, General Post Office, Wellington. Sir, — Besident Agency for New Zealand, San Francisco, 27th February, 1902. Your letter of the 30th January [not printed] reached me per " Sonoma," which vessel did not arrive until midday on Tuesday, some derangement of machinery, I believe, being the cause. Of course, the mails had to wait in New York from Sunday to Wednesday, when the English portion went forward on the " St. Louis," and the Irish per " Teutonic." The last Homeward mails, which left New York per " Umbria," arrived at Liverpool on the 10th February, which was late. The " Sonoma " is scheduled to leave to-night at 7 p.m. ; but, as the weather is very bad, I think it quite possible that a delay will be made until to-morrow (Friday) morning. Sixteen feet have been added to the smoke-stacks this time, so I hope better time will be made on the voyage down. I have, &c, H. Stephenson Smith, Besident Agent. The Secretary, General Post Office, Wellington.

No. 125. Messrs. Hendeeson and Macfarlane, Auckland, to the Hon. the Postmaster-General, Wellington. Oceanic Steamship Company (American and Australian Line), Sir,— Auckland, 3rd March, 1902. In connection with the late arrival of the B.M.S. " Sierra " from San Francisco at this port on the 28fch ultimo (due date, 25th ultimo), we have the honour to inform you that, according to our head-office advices, the British mails were shipped from Liverpool by the Cunard liner " Saxonia " on the 25th January. That steamer was due in New York on Sunday, the 2nd February, but did not arrive till Tuesday, the 4th. As you are aware, the fast steamers of the Cunard line (including the " Campania," " Lucania," " Umbria," and " Etruria ") leave Liverpool on Saturdays, and arrive New York the following Saturday mornings, in time for the British mails to be delivered on board the Oceanic steamer at San Francisco on the following Thursday morning. You will thus see that the late arrival of the " Sierra" at this port was on account of the English mails arriving three days late in San Francisco, and it may interest you to learn that the American liner "St. Louis" left Southampton on the same day that the "Saxonia" left Liverpool, and arrived in New York on Sunday, the 2nd ultimo—two days ahead of the "Saxonia." If the English mails, therefore, had been placed on board this steamer they would have reached San Francisco on the Thursday evening, and our steamer would only have suffered detention to the extent of about eight hours, while the mails, no doubt, would have reached here exactly on scheduled date. Considering the above facts, we think that we are reasonably entitled to what influence your Government can bring to bear on the English postal authorities to procure that the mails be forwarded by the vessel that promises the earliest delivery, for, as you are no doubt aware, by the terms of the Oceanic Steamship Company's contract with the United States Government our steamers are at liberty to depart on regular schedule-time, without regard to the arrival of the English mails at San Francisco. The detention of the "Sierra" for three days illustrates the efforts which the Oceanic Company is making to treat this colony in a magnanimous spirit, and we may say that the results of such a detention upset all our arrangements in regard to coaling at the various ports, cause anxiety in Honolulu (where the cause for the delay is unknown), injure our local traffic with Honolulu, and play into the hands of the other lines making Honolulu a port of call from San Francisco en route to Japan and China. In detailing the effect of holding our steamers back for the English mails we have not mentioned the expense that our company is put to. This includes the extra maintenance of passengers on board, and extra coal burned on the trip endeavouring to make up some of the lost time ; while three days' extra wages to the large crew required on our steamers total up to no inconsiderable amount. We will therefore be glad to hear if your Government will allow us some compensation to cover our loss. In the event of your favourable consideration of this claim, we leave it entirely in your hands to determine the amount. We might only add that throughout the Australasian Colonies the facts governing the late arrivals of our steamers are not generally known, and our line gets a name for uncertainty which affects the passenger-travel to some considerable extent. With every confidence that you will consider all the statements made in this letter in a liberal manner, We have, &c, Henderson and Macfarlane. P.S. —" Sonoma," from San Francisco :We are in receipt of a cablegram stating that this steamer left on the 28th ultimo at 2 a.m. This makes her departure sixteen hours after scheduletime, and the reason for it doubtless is similar to that which detained the " Sierra." The Hon. the Postmaster-General, Wellington. H. and M. (3—F. 6,

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No. 126. The Hon. the Peemiee to the Agent-Geneeal. (Telegram.) Wellington, 11th March, 1902. London mails January twenty-five sent by " Saxonia" three days late reaching New York. Enforced detention "Sierra" Frisco heavy loss company and late delivery here. "St. Louis" left Southampton same day "Saxonia"; arrived New York two days before "Saxonia." Urge Post Office, when swiftest contract vessels withdrawn, give mails fastest vessel available.

No. 127. Messrs. Hbndeeson and Macfablane, Auckland, to the Sbceetaby, General Post Office, Wellington. (Telegram.) Auckland, 14th March, 1902. Have you replied to our letter 3rd instant re steamer's detentions Frisco waiting English mail?

No. 128. The Sbceetaey, General Post Office, Wellington, to Messrs. Hbndeeson and Macfaelanb, Auckland. (Telegram.) Wellington, 14th March, 1902. No, have not replied; but on receipt your letter cabled Agent-General purport complaint, and requested that Post Office be urged, under similar circumstances, to send mails by steamer which would insure quickest delivery. Reply not yet received.

No. 129. Messrs. Hendeeson and Macfaelane, Auckland, to the Seceetaby, General Post Office, Wellington. Oceanic Steamship Company (American and Australian Line), Sic, — Auckland, 17th March, 1902. . . . Detention of steamers: We note with thanks that you have cabled the Agent-General in London the purport of our letter advising the reason for the late despatch of steamers from San Francisco as due to the non-arrival of English mails, and thank you in anticipation of your passing on his reply. We will also be glad to hear the decision of your Government in respect of the matter of compensation dealt with in our letter. We have, &c, Henderson and Macfaelane. The Secretary, General Post Office, Wellington.

No. 130. The Seceetaey, General Post Office, Wellington, to Messrs. Hendeeson and Macfaelane, Auckland. Gentlemen,— General Post Office, Wellington, 22nd March, 1902. I have the honour, by direction of the Hon. the Postmaster-General, to refer to your letter of the 3rd instant, on the subject of the detention- of the s.s. " Sierra " for three days at San Francisco—from the 6th to the 9th ultimo—owing to the late arrival of the British mails despatched from Liverpool by the Cunard liner " Saxonia " to New York, and pointing out that had the mails been sent by the fast American liner " St. Louis " the delay would probably not have occurred. You no doubt received my telegram of the 14th instant, in answer to yours of the same date, in which I informed you that on receipt of your letter a cablegram had been sent to the AgentGeneral conveying the purport of your complaint, and requesting that the Imperial Post Office be urged, under future similar circumstances, to send mails by the vessel which would insure the quickest delivery. In reply to your application for compensation on account of the expenses to which your company has been put by the detention of the " Sierra," the Postmaster-General desires me to refer you to the clause in the draft contract governing payments in such cases, and to say that he would be prepared to pay demurrage, as provided by clause 8 of the draft contract, if it might be assumed that the United States Post Office would not object to the payment being made. I have, &c, Messrs. Henderson and Macfarlane, Auckland. W. Gray, Secretary

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No. 131. The Agent-Geneeal to the Hon. the Peemiee. Westminster Chambers, 13. Victoria Street, London, S.W., Sm,— 27th March, 1902. Eeferring to your cablegram of the 11th instant, instructing me to urge the Imperial Post Office to transmit the outgoing San Francisco mails by the fastest available vessels, I beg to enclose copy of letter which I addressed to the Secretary to the General Post Office, and to which I have received reply stating that the matter will receive the attention of the Postmaster-General. I may say here that the delivery of the mails from New Zealand is, in point of time, still very unsatisfactory. The mail due in London last Saturday, 22nd instant, is not yet delivered, and the non-delivery of the letters coming by it is causing considerable inconvenience in mercantile circles, as to-morrow, Good Friday, being a dies non, it will be hardly possible to send replies by the outgoing mail vid San Francisco, closing as it does at midday on Saturday. I have, &c, The Hon. the Premier, Wellington. W. P. Beeves.

Enclosure in No. 131. The Secretary to the Agent-General to the Secretary, General Post Office, London. Westminster Chambers, 13, Victoria Street, London, S.W., Sir,— 11th March, 1902. I am directed by the Agent-General to direct your attention to the fact that the New Zealand mails which closed in London on the 25th January last were, in consequence of their being forwarded to New York by the s.s. " Saxonia," one of the slowest boats of the Cunard line, three days late in reaching New York, thus enforcing the detention of the s.s. " Sierra" at San Francisco, involving heavy losses to the owners of that steamer and causing late delivery of the mails in New Zealand; and, in reference thereto, to further state that the s.s. "St. Louis," which left Southampton also on the 25th January, arrived at New York two days earlier than the s.s. " Saxonia." Under these circumstances, the Agent-General has been instructed by his Government to urgently represent to the Postmaster-General that it would be greatly to the advantage of both this country and the colony that when the swiftest contract mail-steamers are withdrawn from, or otherwise not available for, the service between this country and New York the New Zealand mails should be forwarded by the fastest vessel otherwise available for the service in question. I am, &c, The Secretary, General Post Office. Walter Kennaway.

No. 132. The Agent-General to the Hon. the Premier. Westminister Chambers, 13, Victoria Street, London, S.W., Sir,— 4th April, 1902. Eeferring to my letter of the 27th March last, I beg herewith to transmit copy of letter received this day from the Imperial Post Office with reference to the transmission to New York of the outgoing San Francisco mails. You will observe that the Postmaster-General hopes, in case the Cunard Company do not employ their fastest steamers for the transmission of the New Zealand mails, to forward them by a fast steamer of some other line. I have, &c, The Hon. the Premier, Wellington. W. P. Beeves.

Enclosure in No. 132. The Secretary, General Post Office, London, to the Agent-General. Sir, — General Post Office, London, 3rd April, 1902. Beferring to your letter of the 11th of last month, I am directed to inform you that the Postmaster-General duly represented to the Cunard Steamship Company the delay and inconvenience which had resulted in the case of mails for New Zealand from the use of the " Saxonia" as the mail-packet to New York on the 25th January. The directors of the company have expressed their regret that, in consequence of their not having a faster vessel at their disposal on that occasion, it became necessary to detain the packet " Sierra" at San Francisco for some days, and they hope that the difficulty will not again arise. On the next four occasions the mails for New Zealand sent vid the United States should be conveyed by the " Umbria," " Campania," "Etruria," and "Lucania." The Postmaster-General suggested to the company that their sailings should be arranged in such a manner that if on occasions it is necessary to employ for their contract service any but their fastest steamers this may be done on other dates than those fixed for the despatch of mails for New Zealand ; and, if this cannot be arranged, the Postmaster-General hopes to be able on any future occasion of the kind to forward the mails for New Zealand by a fast steamer of some other line. I am, &c, The Agent-General for New Zealand. H. Buxton Foeman.

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No. 133. The Secretary, General Post Office, Wellington, to the Superintendent of Foreign Mails, Washington. Sir,— General Post Office, Wellington, 24th April, 1902. Eeferring to my letter of the 19th January, 1901 [No. 129, F.-6, 1901], on the subject of the detention of the mail-steamers at San Francisco to await the arrival of British closed mails for the colonies whenever that course may become necessary in order to secure due despatch, and your reply of the 15th February following [No. 138 ibidem] , to the effect that, while your Department could not compel the Oceanic Steamship Company to hold its steamers at San Francisco for the purpose mentioned, you were of opinion that there would be no doubt that the company would comply with your Department's request to that effect, and that you would have no hesitation in making such request, I have the honour to inform you that the draft contract between the Postmaster-General of New Zealand and the Oceanic Steamship Company is now being revised, and this ail-important matter to this colony necessarily has come up for discussion. The company consider that they have no power to hold or to keep the steamers at San Francisco without specific authority from your office ; but at the same time they express themselves as quite agreeable to detain the vessels whenever you are willing to consent to their doing so. For such detention this Department, subject to the approval of the Postmaster-General of the United States, is prepared to pay the Oceanic Steamship Company demurrage at the rate of £5 an hour after the first twelve hours, and the company have been advised to this effect. I should be much obliged if you would kindly consider the proposal now made, and inform me whether there would be any objection to the Department's paying demurrage, as suggested. I am to thank you for the courteous attention you have hitherto given to the matter of assuring connection with the mail-steamers at San Francisco of the west-bound British mails whenever late, and to express the hope that the present arrangement, which has worked so successfully, will, in any case, be continued. I have, &c, The Superintendent, W. Gray, Secretary. Office of Foreign Mails, Post Office Department, Washington, D.C.

No. 134. The Hon. the Acting-Premier to the Agent-General. Sir,— - Premier's Office, Wellington, 13th May, 1902. I have the honour to acknowledge the receipt of your letter of the 27th March last, referring to my cablegram of the 11th idem on the above-mentioned subject, and forwarding copy of a letter from your office to the Secretary, General Post Office, London, representing the inconvenience caused by the delay to the New Zealand mails owing to the use of a slow boat for their despatch to New York. It is observed that the " St. Louis" was used for the mails forwarded on the 15th February and Bth March, and no doubt your representations will have the effect of deciding the London office to continue the use of the fastest steamers available, irrespective of ownership. The continuance of the late arrival in London of the mails via San Francisco is much regretted, but the Postmaster-General is hopeful that it may be possible to arrange for a change in the sailing-day from Auckland from Saturday to Friday, in which case connection with the fast steamer from New York on the Saturday would be insured, and the delays now occurring would disappear. I have, &c, J. G. Ward, Acting-Premier. The Hon. W. P. Eeeves, Agent-General for New Zealand, London.

No. 135. The Hon. the Acting-Premier to the Agent-General. (Telegram.) Wellington, 17th May, 1902. Homeward Frisco delays again strongly represented Spreckels. [No. 65.] Urged despatch Auckland Friday assure connection New York fast boat Saturday.

No. 136. Messrs. Henderson and Macfarlane, Auckland, to the Secretary, General Post Office, Wellington. Oceanic Steamship Company (American and Australian Line), Sir,— Auckland, 29th May, 1902. We have the honour to refer you to our letter of 3rd March, in which we requested compensation for the detention of the " Sierra," which waited at San Francisco from her due time-table date to 9th February for the arrival of the English mail which was landed late in New York by the Cunard Company's " Saxonia." It appears that an official of the J. D. Spreckels and Bros. Company requested us to make a claim without the consent of the president, Mr. John D. Spreckels,

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and we are now in receipt of a letter from the latter gentleman from which we quote : "I did not expect to make any claim for demurrage, and did not call upon you to do so. If you have not already done so, I wish that you would recall that portion of your letter to the Postmaster-General asking for compensation, and explain that it was a misunderstanding on your part. Otherwise he will not understand the apparent inconsistency of the claim with the draft contract as amended by me." We have therefore much pleasure in withdrawing the claim referred to, and, judging from Mr. Spreckels's cables to us in connection with the departure of steamers from this port, which have been duly passed on to you, you will no doubt conclude that the president of the Oceanic Company is anxious to act in harmony with the New Zealand Government to the fullest extent permitted by the United States mail-contract. We have, &c, Henderson and Macfaklane, General Agents for New Zealand. The Secretary, General Post Office, Wellington.

No. 137. The Secretary, General Post Office, Wellington, to Messrs. Henderson and Macfarlane, Auckland. Gentlemen, — General Post Office, Wellington, sth June, 1902. I have the honour to acknowledge, with thanks, the receipt of your letter of the 29th ultimo, withdrawing the claim made on behalf of the J. D. Spreckels and Bros. Company for compensation on account of the detention of the " Sierra " at San Francisco until the 9th February last for the English mails which arrived late at New Zork by the Cunard Company's " Saxonia." I have, &c, W. Gray, Secretary. Messrs. Henderson and Macfarlane, Auckland.

No. 138. The Hon. the Acting-Premier to the Agent-Geneeal. ' Sir, — Premier's Office, Wellington, 6th June, 1902. I have the honour to acknowledge the receipt of your letter of the 4th April last, covering copy of one from the Imperial Post Office stating that the Postmaster-General had represented to the Cunard Steamship Company the delay to the New Zealand mails owing to their despatch by the " Saxonia" in January last, and had suggested that only the fastest steamers be used for our mails. I am obliged for your action in this matter, and pleased to learn that the Imperial Postmaster-General will probably forward the New Zealand mails by a fast steamer of some other line when the Cunard Company does not employ its fastest steamers for the service. I have, &c, J. G. Ward, Acting-Premier. The Hon. W. P. Eeeves, Agent-General for New Zealand, London.

No. 139. The Hon. the Acting-Premier to the Agent-Genebal. Sir,— Premier's Office, Wellington, 6th June, 1902. In continuation of previous correspondence, I have now the honour to enclose copy of my cablegrams of the 17th and 28th ultimo [Nos. 135 and 77], from which you would learn that the representations to Messrs. the J. D. Spreckels and Bros. Company resulted in the sailing-day of the San Francisco steamers from Auckland being put forward from Saturday to Friday. Commencing, therefore, with the departure of the " Ventura " on the 27th proximo, regular connection at New York with the Saturday fast steamer for Great Britain should be assured, and the vexatious delays in the delivery of the Homeward mails at London, so frequent of late, I hope, ended. I have, &c, J. G. Ward, Acting-Premier. The Hon. W. P. Reeves, Agent-General for New Zealand, London.

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VANCOUVER SERVICE.

No. 140. The Deputy Postmastee - Genekal, Ottawa, to the Hon. the Postmastbe - Genebal, Wellington. Sic, — Post Office Department, Canada, Ottawa, 23rd November, 1901. Referring to the question discussed in my letter of the 23rd August, 1898 [No. 223, F.-6, 1899], and your reply of the 26th October, 1898 [No. 233, F.-6, 1899], as to the appropriation of the sea-postage on matter sent from Great Britain via Canada, and by the steamers of the Canadian-Australian line to New Zealand, I beg leave to inform you that a letter is being written to-day to the General Post Office, London, stating that this Department adheres to the view that it should receive credit for the postage in question. In the letter from your office to which reference is made the opinion is expressed that this Department misapprehends the relations of the United States Post Office to the San Francisco service. It is not clear, however, to my mind that such is the case. The United States Post Office, not paying any subsidy for the service in question, was willing to apply all the accrued sea-postage on matter sent from San Francisco to New Zealand towards the maintenance of the service. The case of Canada is different. It subsidises the service, as you are aware, to the amount of £25,000 sterling, expecting to receive a partial return for this outlay in the sea-postage on mail-matter forwarded. As regards the resolutions adopted by the New Zealand House of Bepresentatives, I may observe that, while a copy of these was transmitted by you to this Department, no attention was drawn to any provision therein by which Canada was expected to be bound, and the main purpose of your communication was understood to be the obtaining of information as to the forwarding of your mails after arrival in Canada, as was apparent from the terms of the reply sent to you on the 25th January, 1898. I am further to observe that upon an examination of the resolutions in question it is found that they speak explicitly only of the service in one direction—viz., from New Zealand to Vancouver. I have, &c, E. M. Coultee, The Postmaster-General, Wellington. Deputy Postmaster-General.

No. 141. The Sbcbetaby, General Post Office, Wellington, to the Deputy Postmaster-Genebal, Ottawa. Sic, — General Post Office, Wellington, 7th January, 1902. I have the honour to acknowledge the receipt of your letter of the 23rd November last, in reply to mine of 26th October, 1898, about the Pacific sea-rates collected by your Department on correspondence from Great Britain, &c, for this colony, conveyed by the Vancouver mail-service during the period New Zealand was a party to the contract; and note that your Department adheres to the view that it should receive credit for the sea-postage. I may say that it had been considered that the matter was closed, seeing that no communication on the subject had come to hand since your letter of the 31st August, 1899, [Not printed. It stated that the London Post Office had been written to on 10th May, and that a further communication would be addressed to that office.] I have, &c, The Deputy Postmaster-General, Ottawa. W. Geay, Secretary.

No. 142. Exteact from Mr. H. Stephenson Smith's Letter of the 6th February, 1902. [No. 123.] "It is rumoured that the Canadian-Pacific Company is going to considerably accelerate its overland express in the near future—l think, making Montreal in four days. But Ido not know how much of this reduced time will affect the Pacific section."

No. 143. The Sbceetaey, General Post Office, Wellington, to the Managing Diebctoe, Union Steam Ship Company, Dunedin. (Telegram.) Wellington, 17th February, 1902. Now that the Vancouver steamers are again to call at Fiji, may we rely on your monthly vessel from Auckland connecting regularly with Vancouver boats at Fiji ? This month the Vancouver

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steamer leaves Sydney on 26th instant and Fiji on sth proximo. " Taviuni " leaves Auckland on 26th instant, and should arrive Fiji on 3rd proximo. If the Auckland-Fiji route is to be relied on, the Vancouver service could be used with advantage for American correspondence, and at times for specially addressed correspondence for Great Britain. To what extent will the Pacific voyage be lengthened by steamers calling at Fiji ?

No. 144. The Managing Director, Union Steam Ship Company, Dunedin, to the Secretary, Genera Post Office, Wellington. (Telegram.) Dunedin, 18th February, 1902. Am sending you copy time-table Vancouver service current year. In order insure reaching Vancouver on Thursday, the steamers will in future leave Sydney on Monday, Brisbane Wednesday midnight, and Fiji Tuesday noon. As it happens, the " Taviuni " reaches Fiji on the Monday preceding the arrival of the Vancouver steamer from Brisbane, so will form a suitable connection from New Zealand, which we will endeavour to maintain. This connection can be relied upon for the next three months. It is possible, however, that the " Aorangi," in May, may be pushed ahead a week. Negotiations in this direction are now going on with a party of members of Federal Parliament, to enable them to reach London a week before Coronation. This interruption will, however, only be for the one occasion. The call at Fiji lengthens the through journey from Brisbane to Vancouver one day.

No. 145. The Secretary, Chamber of Commerce, Wellington, to the Hon. the Postmaster-General, Wellington. Sir, — Wellington Chamber of Commerce, Wellington, 25th February, 1902. I have the honour, by direction, to submit to you the following resolutions which were adopted at a Conference of New Zealand Chambers of Commerce recently held in Wellington, and to bespeak for the same your favourable consideration : — Resolved, "That, in the opinion of this Conference, it is desirable: (1.) That all postal contracts be restricted to services carried on under the British flag. (2.) That with this view the Government be respectfully urged to arrange for— (a) A monthly service between New; Zealand and Vancouver ; (b) a weekly service between New Zealand and Australia suitable to the requirements of both the North and the South Islands ; and such as will enable all parts of the colony to have the fullest advantage possible from the weekly Federal services between Australia and Europe vid Brindisi. I have, &c , The Hon. the Postmaster-General, Wellington. S. Carroll, Secretary.

No. 146. The Secretary, General Post Office, Wellington, to the Secretary, Chamber of Commerce, Wellington. Sir,— General Post Office, Wellington, 24th March, 1902. I have the honour, by direction of the Hon. the Postmaster-General, to refer to your letter of the 25th ultimo, submitting copies of resolutions passed at a recent Conference of New Zealand Chambers of Commerce, as follows [as in No. 145], and, in reply, to inform you that the representations of the Conference are duly noted. I have, &c, Thos. Rose, for the Secretary. The Secretary, Wellington Chamber of Commerce, Wellington.

No. 147. The Secretary, General Post Office, Wellington, to the Managing Director, Union Steam Ship Company, Dunedin. (Telegram.) Wellington, Bth April, 1902. What subsidy paid by New South Wales, Queensland, and Canada to Vancouver service? . . .

No. 148. The Managing Director, Union Steam Ship Company, Dunedin, to the Secretary, General Post Office, Wellington. (Telegram.) Dunedin, Bth April, 1902. Present subsidies granted to Vancouver service are as follows: Canada, £25,000; New South Wales, £10,000 ; Queensland, £7,500.

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FEDERAL SERVICE-

AUSTRALIA-NEW ZEALAND CONNECTION.

No. 149. The Seceetaby, General Post Office, Wellington, to the Deputy Postmasteb-Genebal, Sydney. (Telegram.) Wellington, Bth August, 1901. What are present transit rates per pound on Federal mails across Italy, and across France ?

No. 150. The Deputy Postmastee-Geneeal, Sydney, to the Seceetaby, General Post Office, Wellington. (Telegram.) Sydney, 9th August, 1901. Peesent transit rates across Italy and France, are for each country one franc seventy centimes per kilogramme of letters, and 21-25 centimes per kilogramme other articles.

No. 151. The Genebal Managek, Union Steam Ship Company, Dunedin, to the Secbetaey, General Post Office, Wellington. Union Steam Ship Company of New Zealand (Limited,) Sib,— Dunedin, 20th August, 1901. The mail w<2 San Francisco was to have been despatched from Auckland, according to the time-table, on 4th May last. The " Sonoma," the mail-steamer, however, was delayed at Sydney until the 9fch May, and did not leave Auckland until the 13th. At your request, we detained our steamer " Mokoia " at Bluff from the afternoon of 30th April until next morning, to allow of her taking the mail which otherwise should have gone vid San Francisco. I understand that this detention was of great service to your Department, as well as to the general public, and we were pleased to be able to fall in with your request that the "Mokoia" should be detained for the purpose specified. I enclose a voucher for a nominal charge of £50 for the " Mokoia's " detention and shall be much obliged if you will pass same at your early convenience. I have, &c, T. W. Whitson, for General Manager. The Secretary, General Post Office, Wellington.

No. 152. The Seceetaby, General Post Office, Wellington, to the Managing Dibectob, Union Steam Ship Company, Dunedin. Sib,— General Post Office, Wellington, 24th September, 1901. Eeferring to your letter of the 20th ultimo on the above-named subject, I have the honour to inform you that a voucher for £50 in favour of your company has been prepared and passed for payment. I have, &c, The Managing Director, W. Geay, Secretary, Union Steam Ship Company of New Zealand (Limited), Dunedin,

No. 153. The Seceetaby, Chamber of Commerce, Wellington, to the Hon. the Postmasteb-Genebal, Wellington. Sic, — Wellington Chamber of Commerce, Wellington, 3rd October, 1901. The Council of this Chamber desires respectfully to bring under your notice the fact that such portions of New Zealand mails for the United Kingdom as are sent by way of Sydney, as also correspondence connected with the increasing trade of the colony with the Bast, are unduly delayed by the fact that the steamers carrying such mails leave here on Saturdays and reach Sydney on Wednesdays, thus missing the outward mail despatched thence each Tuesday, and involving a detention of six days for the following mail. It is also desired to call your attention to the fact that the inward Federal mail, which is due in Melbourne on Tuesdays, and frequently arrives on the Monday, in detained in Melbourne for the Union steamer leaving on Wednesday, and so reaches the Bluff on the Tuesday. These detentions could be largely avoided and a great improvement effected in our mail system if the intercolonial steamboat service were in each case advanced by a day. The inward mail would then reach the Bluff on the Monday, and the outward mail could be despatched from Wellington on the Friday, so catching the outward mail leaving Sydney on the Tuesday. Under such circumstances the principal towns in the South Island and Wellington would possess a regular weekly service, with three days for reply to their correspondence. It appears to my Council that a still further improvement might be effected if the express train from Dunedin, which now leaves at 11 a.m., were despatched at 8 o'clock. This would enable the steamer to leave Lyttelton by 6 o'clock with English and colonial mails, which would catch the trains leaving Wellington, and so enable the important towns of Napier, Wanganui, and

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New Plymouth also to reply on Friday to English correspondence, while the mails would reach Auckland on Thursday morning. With a service so organized, it seems to my Council that the colony would be well served if, in addition, a satisfactory connection could be arranged with America, and by that faster route with England. I have, &c, The Hon. the Postmaster-General, Wellington. S. Carroll, Secretary.

No. 154. The Secbetaby, General Post Office, Wellington, to the Sbceetaey to the PostmastebGeneeal, Melbourne. (Telegram.) Wellington, 15th October, 1901. Should New Zealand decide make extended use Federal service, could we come in on basis population ? Kindly reply to-morrow.

No. 155. The Hon. the Peemiee of the Commonwealth of Austealia, Melbourne, to the Hon. the Peemiee, Wellington. Commonwealth of Australia, Department of External Affairs, Sic, — Melbourne, 22nd November, 1901. On the 15th ultimo my colleague the Hon. the Postmaster-General received a cablegram from the Secretary of the Post Office, Wellington, in the following terms : " Should New Zealand decide make extended use Federal service, could we come in on basis population ? Kindly reply to-morrow." In reply, I have the honour to inform you that this Government has no objection to offer to the proposed arrangement. I have, &c, The Hon. the Premier, Wellington. Edmund Baeton.

No. 156. The Hon. the Pbemieb, Wellington, to the Hon. the Peemiee of the Commonwealth of Austealia, Melbourne. Sic, — Premier's Office, Wellington, 25th January, 1902. I have the honour to acknowledge the receipt of your letter of the 22nd November last, and to thank you for agreeing to the proposal that in the event of New Zealand deciding to make extended use of the Federal mail-service this colony could come in on the basis of population. As you are probably aware, arrangements have been made to continue the use of the steamers of the San Francisco service for the despatch of foreign correspondence. I have, &c, J. Caeeoll, for the Premier. The Hon. the Premier of the Commonwealth of Australia, Melbourne.

[Eead Nos. 145 and 146.]

No. 157. The Hon. the Postmastee-Geneeal, Wellington, to the Seceetaey, Chamber of Commerce, Wellington. Sic,— General Post Office, Wellington, 19th May, 1902. I have the honour to refer to your letter of the 3rd October last, bringing under my notice, on behalf of the Council of your Chamber, the delay at Sydney and Melbourne to the European mails to and from the colony owing to the existing running of the intercolonial steamers, and urging that a more suitable time-table be arranged for mail purposes, at the same time suggesting that the express train from Dunedin for Christchurch should leave at 8 a.m., so as to enable English and Australian mails arriving vid the Bluff to reach Wellington the following day and be forwarded to Napier, Wanganui, and New Plymouth by the morning train. The qu.. of an improved connection with the Federal service at Sydney and Melbourne has engaged the attention of Government for some time, but, I regret, without any definite result. I need scarcely remind you that the Union Steam Ship Company was approached in 1899 with the object of the Post Office securing a time-table which would admit of prompt connection at Sydney with the Federal steamers, but the price asked for a Wellington-Sydney service alone was so prohibitive that the negotiations were not proceeded with. It was pointed out by the company that an alteration in the time-table such as was desired would completely derange the intercolonial service, and otherwise be inconvenient, except for mails. Were an alteration of the MelbourneBluff time-table also involved, as suggested by your Council, this would add considerably to the price asked for the Wellington-Sydney connection. The San Francisco service is now three-weekly, and I am of opinion that a regular weekly service as indicated by you to and from Australia is not required. However, the subject of ocean mail-services as affecting New Zealand and the Australian States is presently to be reviewed at the Conference of Premiers and representatives of the Imperial Government, and no doubt proposals will be brought forward for improving the services, which proposals will receive the earnest consideration of the Government of this colony. I desire to add that any alteration in the running of the express trains from Dunedin, as outlined in your letter, would be distinctly disadvantageous to the wants and convenience of the travelling public, and I regret therefore that I cannot see my way to make any such change. I have, &c, J. G. Waed, Postmaster-General. The Secretary, Wellington Chamber of Commerce, Wellington. 7—F. 6.

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INTEEPfIOVINCIAL SEBVICE.

No. 158. The Secretary, General Post Office, Wellington, to the General Manager, Union Steam Ship Company, Dunedin. (Telegram.) Wellington, 20th September, 1901. In connection with railway running daily through service between Wellington and New Plymouth from Ist November, do you and Northern Company intend to provide a daily service by steamer between New Plymouth and Onehunga?

No. 159. The General Manages, Union Steam Ship Company, Dunedin, to the Secretary, General Post Office, Wellington. (Telegram.) Dunedin, 20th September, 1901. We are inclined to think trade does not warrant daily service New Plymouth-Onehunga; but have arranged discuss matter with Eanson, Wellington, next week.

No. 160. The General Manager, Union Steam Ship Company, Dunedin, to the Secretary, General Post Office, Wellington. Union Steam Ship Company of New Zealand, (Limited), S IE) — Dunedin, 4th October, 1901. The General Manager of New Zealand Eailways has advised us that the Government intend running through daily trains between Wellington and New Plymouth from Ist November, and has approached the Northern Steamship Company and ourselves as to providing a daily connection between New Plymouth and Onehunga. We are replying that we think our present sailings are ample for the trade, but that we are willing to give the daily service a trial of two or three months. I enclose draft of proposed time-table. You will note that if the present dates in connection with the arrival and departure of the San Francisco mail at Auckland are maintained the outward mail would require to be shipped from New Plymouth on Fridays, and also that the running of the steamers will make it necessary that a regular sailing-hour shall be maintained from Onehunga for the south, which would probably be 4 p.m. If the San Francisco mail arrived in Auckland, at, say, 9 a.m. it would not be possible to ship it before 4 o'clock; but we would undertake to keep the steamers as late as possible in the afternoon, provided time was allowed to catch the express at New Plymouth. We have advised the General Manager of Eailways that we shall require your consent to these proposals as a condition of providing a daily connection, and shall be glad to have your views. I have, &c, C. Holdsworth, General Manager. The Secretary, General Post Office, Wellington.

No. 161. The General Manager, Union Steam Ship Company, Dunedin, to the Secretary, General Post Office, Wellington. (Telegram.) Dunedin, sth November, 1901. Glad if you would let me have reply to my letter of 4th October, re connection WellingtonNew Plymouth service, in view of getting December time-table out.

No. 162. The Secretary, General Post Office, Wellington, to the General Manager, Union Steam Ship Company, Dunedin. (Telegram.) Wellington, 6th November, 1901. Be your letter 4th ultimo, Wellington-New Plymouth time-table : I am waiting to hear definitely from Spreckels whether he accepts resolutions of House of Eepresentatives re renewal Frisco service. As you may have gathered from me, the departure from Auckland may possibly be changed from Saturday to Friday. Hope to be able to wire this week.

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No. 163. The Genebal Manager, Union Steam Ship Company, Dunedin, to the Seceetary, General Post Office, Wellington. (Telegram.) Dunedin, 6th November, 1901. Thanks for wire. We do not wish to appear impatient, but had December time-table in view.

No. 164. The Secretary, General Post Office, Wellington, to the General Manager, Union Steam Ship Company, Dunedin. (Telegram.) Wellington, 11th November, 1901. Fb'isco service and interprovincial running: I fear it will be end of month before we hear definitely from Spreckels about renewal. Meanwhile you had, perhaps, better go on with your December time-table providing for "Takapuna" leaving here on Wednesday, we sending mails by train Friday morning, lam afraid, however, there will be trouble with respect to the inward mail if you arbitrarily fix 4 p.m. as the hour of departure irrespective of the time the Frisco steamer reaches Auckland. This, however, can be threshed out later on, and the question of subsidy discussed.

No. 165. The General Manager, Union Steam Ship Company, Dunedin, to the Secretary, General Post Office, Wellington. (Telegram.) Dunedin, 20th November, 1901. Beferbing to your telegram eleventh, I think I explained that neither Northern Company nor ourselves consider a daily service between New Plymouth and Onehunga is warranted by present condition or immediate outlook of trade, and our offer to Eailway Department to undertake it experimentally was subject to your Department approving of arrangements for Fr'iseo mail connection. If you have doubts as to our proposals being satisfactory, it would, perhaps, be inadvisable for us to initiate daily service with the prospect of its breaking down. Owing to mail arrangements, we are anxious furnish satisfactory coastal connection with Fr'iseo, and at same time do not wish to be penalised in connection subsidy because we are endeavouring to meet wishes of Eailway Department. Kindly reply.

No. 166. The Secretary, General Post Office, Wellington, to the General Manager, Union Steam Ship Company, Dunedin. (Telegram.) Wellington, 20th November, 1901. Be your letter of 4th October, my telegram of 11th instant, and yours of to-day: The file of papers is before the Postmaster-General, but I hope he will be able to deal with matter on his return from Palmerston on Friday. Meantime my reference to the hour of departure from Onehunga and reconsideration of subsidy should not, I think, in any way affect your decision to give the daily service a trial. The subsidy matter had particular reference to the fact that it may frequently happen that the service will not be performed beyond New Plymouth, the Department having to provide connection from and to Wellington ; but this ought to be susceptible of mutual settlement without impinging on the larger question of the daily service.

No. 167. The General Manager, Union Steam Ship Company, Dunedin, to the Seceetary, General Post Office, Wellington. (Telegram.) Dunedin, 22nd November, 1901. Have decided give daily service a trial, and am announcing it next month's time-table. It is, however, subject to satisfactory arrangement re subsidy coastal carriage Fr'iseo mail. We urge that if to suit Eailway Department we undertake two extra trips a week between New Plymouth and Onehunga we should not be prejudiced if the running will not admit of our carrying mail between New Plymouth and Wellington. Approximate Cost of Paper.— Preparation, not given;! printing (1,450 copies), £29 14s.

By Authority: John Mackay, Government Printer, Wellington.—l9o2. Price Is.}

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Bibliographic details

OCEAN MAIL-SERVICES (FURTHER PAPERS RELATING TO). [In continuation of Paper F.-6c, presented on the 17th October, 1901.], Appendix to the Journals of the House of Representatives, 1902 Session I, F-06

Word Count
35,981

OCEAN MAIL-SERVICES (FURTHER PAPERS RELATING TO). [In continuation of Paper F.-6c, presented on the 17th October, 1901.] Appendix to the Journals of the House of Representatives, 1902 Session I, F-06

OCEAN MAIL-SERVICES (FURTHER PAPERS RELATING TO). [In continuation of Paper F.-6c, presented on the 17th October, 1901.] Appendix to the Journals of the House of Representatives, 1902 Session I, F-06