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F.—6a

. 1905. NEW ZEALAND.

OCEAN MATL-SERVICES (FURTHER PAPERS RELATING TO). [In continuation of Paper F.-6, presented on the 21st July, 1905.]

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

INDEX.

San Fbancisco Service — Contract with the Oceanic Company, &c. Dispute with Federal Government as to No. rate of payment .. .. .. 1,2 History of mail-service payments since 1866 1 P. and O. rates .. .. .. 1 Panama service rates .. .. .. 1 Proposed fixed contribution by Commonwealth to San Francisco service .. 1,3 Proposed fixed contribution by New Zealand to P. and 0. and Orient services 1, 3 Reduction of payment to Eastern services to Postal Union rates .. .. 1 Incidents of United States and Atlantic Transit. Accelerated despatch of train, San Fran- No. Cisco-Chicago, " Overland Limited " .. 8 Arranging for mails leaving San Francisco Tuesday to catch Saturday's steamer at New York .. .. 12 Arrival, late, in London of San Francisco mails .. .. .. .. 4, 10, 11, 14 Chicago, better despatch required in transferring mails at .. .. .. 12 Late departure of "Sonoma" from San Francisco .. .. .. .. 18,15 Mr. Sproule's visit to San Francisco .. 5,6,7,12 Prompt arrival of steamers at San Francisco .. .. .. .. 6, 12 Rates paid by London to U.S.A. for sea transit San Francisco-Auckland .. 9

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Vancouver Service— No. Contributions from non-contracting colonies .. .. .. .. 18, 19 Offer of renewal via Brisbane or proposed inclusion of New Zealand .. 16,17 Vancouver steamers calling at New Zealand .. .. .. .. 14 Australia-Suez Service— No. Colombo-Mauritius service .. .. 23 Contract, Orient service .. .. 31,36 History of mail-service payments since 1866 .. .... .. i P. and 0. rates .. .. .. i Parcels by P. and O. and Orient steamers .. .. .. ..29,30,32,33 Payment for mails to Western Australia 29, 32, 33 Postal Union rates for P. and O. and Orient services .. .. .. 1, 84, 86 Proposed fixed contribution by New Zealand to P. and O. and Orient services .. .. .. .. 1,8 Rates to Commonwealth for transmission of New Zealand mail matter .. 1, 24, 25, 27, 28 Renewal Orient service .. .. 26, 31, 36 Weights of mails per " Waikare" and "Mokoia" ~ ~ ~ .. 20,21,2?

F.^6a

2

SAN FBAN 01800 SERVICE.

CONTRACT WITH THE OCEANIC COMPANY, ETC.

No. 1. The Hon. the Postmaster-General, Wellington, to the Hon. the Postmaster-General, Commonwealth of Australia, Melbourne. S IR) _ General Post Office, Wellington, 13th May, 1905. Adverting to our late discussions respecting the payment made by the Commonwealth for the conveyance of Australian mails by the San Francisco service, and the rates paid by New Zealand for the carriage of its outward correspondence by the Peninsular and Oriental and Orient steamers, I would again urge you to extend more liberal treatment to the San Francisco service than is represented by the present payment of 2s. per pound for letters and 4s. per hundredweight for other matter, a contribution, in my opinion, entirely out of keeping with the value of the service to the Commonwealth. It may be convenient if I briefly refer to the history of the payments as applied to ocean mail-services, so far as they have obtained between New Zealand and Australia. In connection with the Panama service, established in 1866, the London Post Office calculated that £1 ss. 4d. per pound was the equivalent, of the postage on letters, Is. 6d. on books, and Is. newspapers. These amounts were paid to New Zealand and New South Wales by the London Post Office for their providing the service between Sydney, Wellington, and Panama. Non-con-tracting colonies also paid the same rates. On the other hand, New Zealand paid the Australian Colonies similar poundage-rates for the use it made of the Peninsular and Oriental service. The Panama service ceased in 1869, and was replaced by the San Francisco service in March of the following year, and for a time these payments were mutually continued. In 1891, it was agreed that the poundage-rates in respect of both services should be reduced to 12s. per pound for letters, Is. for books, and 6d. for newspapers. The contributions from non-contracting colonies to the San Francisco service were paid over to the contractors, instead of being retained by this office, as had been the practice previously. In contracting with Messrs. Spreckels in November, 1900, for the renewal of the San Francisco service, it was decided that New Zealand should no longer collect the non-contracting colonies' contributions, but leave the contractors to make their own arrangements with the colonies. It should be mentioned that for some time previous to 1900, and until Messrs. Spreckels took over the service in that year, New South Wales made a fixed contribution of £4,000 a year to the San Francisco service. New Zealand entered the Postal Union in 1891, and reduced the letter-postage to Great Britain to 2|d. The Sydney Post Office was advised of this, and also informed, as already mentioned, that the rates for the use of the San Francisco service by non-contracting colonies had been reduced to 12s. per pound for letters, Is. for books, and 6d. for newspapers. As New Zealand would probably make regular use of the Peninsular and Oriental and Orient services—the direct service not having been renewed —the Sydney Post Office was asked whether the Australian Colonies would not agree to allow this colony the use of the Peninsular and Oriental and Orient services for the equivalent of the bare postages. At the same time the Sydney Post Office was also reminded that all recoveries from non-contracting colonies were paid over by us to the contractors. The reply was that the " Postmaster-General thinks the fairest arrangement is to follow the recommendations of the heads of Departments at the Sydney Conference, and charge 12s. on letters by both San Francisco and Suez routes." It will thus be seen that New Zealand has been paying 12s. per pound for letters, Is. for books, and 6d. for newspapers for sea carriage by the Peninsular and Oriental and Orient services since 1891. It was only during the short break between the termination of the late Peninsular and Oriental and Orient contracts, and the new one made in March last with the Orient Company, that the Commonwealth intimated that we could have the use of the services at the reduced poundage-rates of 2s. per pound for letters and 4s. per hundredweight for other matter. Since then it is understood that we may make use of the services on payment of Postal Union rates. Our payment for sea carriage of our outward mails in 1904 from Adelaide by the Peninsular and Oriental and Orient services was £4,031. At Postal Union rates the payment would not have exceeded £1,400. The Commonwealth, however, does not even pay Postal Union rates to the San Francisco service, but the local rate of 2s. per pound for letters and 4s. per hundredweight for books and newspapers, a payment, as already indicated, entirely inadequate to the value of the service to the Commonwealth, and especially to Sydney, which is the terminal port, and benefits to the extent of over £62,500 a year spent in coaling and victualling the ships.

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I am not clearly acquainted with the reasons which led to the abandonment by Australia of the long-standing arrangement under which a mutual support by the contracting colonies was to be given as far as practicable to the eastern and western services. The reduction from a rate of 12s. per pound for letters, Is. for books, and 6d. for newspapers, to the Commonwealth rate of 2s. per pound for letters, and 4s. per hundredweight for books and newspapers, took place on the Ist December, 1900, but the Commonwealth did not suggest any corresponding reduction in the rates payable by New Zealand for the use of the Peninsular and Oriental and Orient services. While I am now aware that New Zealand is at liberty to reduce the payment towards the eastern services to Postal Union rates, the point requires further consideration whether this arrangement should not be retrospective from at least the date on which the Commonwealth reduced its payment for conveyance of mails by the San Francisco service. At the same time, it is difficult to Tinderstand why the Commonwealth should not, failing a more equitable arrangement, pay at least the Postal Union rates for matter conveyed by the Sao Francisco steamers. The point is one which has been brought before my Department by the contractors' representatives in more than one form, but I have heretofore refrained from expressing an opinion as to the merits of the case. Taking a broad view of the question, I would venture to suggest that the value of the San Francisco service to the Commonwealth might be moderately estimated at £10,000 per annum, while the value to New Zealand of regular communication by the Peninsular and Oriental and Orient services is about £5,000. I have not at hand the amount actually paid over by the Commonwealth for the use of the San Francisco service, but, of course, it is considerably less than £10,000 per annum, and, although New Zealand has, up to the present, been paying about £4,000 a year for the use of the eastern steamers, the payment of Postal Union rates will reduce our contribution to about £1,500 per annum. At the present stage of this correspondence I will not enter into the merits of the poundage and fixed-contribution systems, beyond remarking that in my opinion the interests of New Zealand are at present best served by granting as far as practicable liberal payments to ocean mailsteamers, and that as a matter of reciprocity 1 am prepared to recommend my Government to favourably consider the payment of a fixed contribution to the Peninsular and Oriental and Orient steamers, provided the Commonwealth will adopt a similar policy in regard to the San Francisco service. I may add that, unless some such arrangement is adopted, there will be great difficulty in obtaining a renewal of the San Francisco service. I shall be glad if you will give these suggestions your earnest and favourable consideration. I have, <fee, J. G. Ward, Postmaster-General. The Postmaster-General of the Comonwealth of Australia, Melbourne.

No. 2. The Hon. the Prime Minister to the Agent-General. Sir, — Prime Minister's Office, Wellington, 30th May, 1905. I have the honour to forward herewith, for your information, copy of a letter, dated the 13tb instant, from the Postmaster-General to the Postmaster-General of the Comonwealth of Australia, in reference to the payment made by the Commonwealth for the conveyance of Australian mails by the San Francisco service, and the rates paid by New Zealand for the carriage of its outward correspondence by the Peninsular and Oriental and Orient steamers. I have, &c, J. G. Ward, For Prime Minister. The Hon. W. P. Reeves, Agent-General for New Zealand, London.

No. 3. The Secretary, General Post Office, Wellington, to the Secretary, Postmaster-General's Department, Melbourne. Sir,— General Post Office, Wellington, 21st July, 1905. I have the honour to ask whether a reply may now be expected to the letter of the 13th May last, addressed by Sir Joseph Ward to the Postmaster-General of the Commonwealth, suggesting that 3 r our Administration should pay a fixed contribution towards the San Francisco mailservice, and also to my letter of the 10th June [No. 34] requesting to be furnished with information as to the rates payable by this Administration for the use of the Peninsular and Oriental and Orient Companies' services. I have, &c, W. Gray, Secretary. The Secretary, Postmaster-General's Department, Melbourne.

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INCIDENTS OF UNITED STATES AND ATLANTIC TRANSIT. ETC, No. 4. The Agent-General to the Hon. the Prime Minister. Westminster Chambers, 13, Victoria Street, London, S.W., Sir, — 13th April, 1905. I beg leave to direct your special attention to the fact that the homeward mails vid San Francisco are seldom delivered in London on the due date. This has been more especially the ease as regards the mails arriving within the last three or four months. On three occasions they were not delivered until the Tuesday after the Saturday on which they were due, and twice not until the Thursdaj' after. I need scarcely say that this delay is the source of much inconvenience and loss, from a business point of view, to the shipping, banking, and other interests. Although the Post Office authorities in New Zealand are no doubt fully aware of these irregularities, and anxious to do everything possible to obviate them, I feel it my duty to specially bring them under your notice. I have, &c, The Hon. the Premier, Wellington. W. P. Reeves.

No. 5. Mr. V. A. Spkoul, Auckland, to the Secretary, General Post Office, Wellington. (Telegram.) Auckland, 31st May, 1905. Proceeding Frisco, " Ventura." If I can be of service, please command me.

No. 6. The Secretary, General Post Office, Wellington, to Mr. Sproul, Auckland. (Telegram.) Wellington, 2nd June, 1905. Thanks. The only matter I would like you to deal with is that of the arrival of the steamers at Frisco in time for the morning east-bound train. As you know, this is absolutely essential for the regular delivery of the mails in London. The irregularities have been many and vexatious, and London merchants are, as you are probably aware, up in arms. I would like you to see our Resident Agent, Mr. Stephenson Smith, whom I am advising of your visit to Frisco. I trust that your visit will result in a decided improvement in the service ....

No. 7. The Secretary, General Post Office, Wellington, to the Resident Agent for New Zealand, San Francisco. (Telegram.) Wellington, 2nd June, 1905. * * * Mr. Sproul, passenger agent for Messrs. Henderson and Macfarlane, proceeds to Frisco by outgoing steamer. I have urged him to prevail on Spreckels to see that steamers invariably arrive in time for morning train for New York. He is aware of the late arrivals of Frisco mail in London and dissatisfaction of merchants and others at the repeated irregularities. I trust that something satisfactory may come of his visit, and that there will be no further cause for complaint in the delivery of mails in London. I was very pleased to learn that the " Sonoma " arrived at 8 o'clock on Monday morning last, which I hope may result in her mails reaching London on time

No. 8. Extract from Report of the Mail Agent, R.M.S. " Sierra," to the Secretary, General Post Office, Wellington, dated sth June, 1905 . From the Ist May, the time by rail between San Francisco and Chicago has been accelerated one hour. The " Overland Limited " train, which formerly left San Francisco at 10 a.m., now leaves at 11 a.m. The extra hour has been gained by despatching , a train from San Francisco at 9 a.m, which stops at all stations between San Francisco and Ogden. The Overland, leaving two hours later, now stops at principal stations only between San Francisco and Ogden.

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No. 9. The Secretary, General Post Office, London, to the Hon. the Postmastek-General, Wellington. Sir, — General Post Office, London, 9th June, 1905. In reply to your letter of the 29th March last [No. 39, F.-6, 1905], I am directed by the Postmaster-General to inform you that the rates at present paid by this office to the Post Office of the United States of America for the sea transit of mails between San Francisco and Auckland are 6 francs 67 centimes per kilogramme of letters and post-cards, and 50 centimes per kilogramme of other articles. These rates were arrived at by deducting the Atlantic rates of 5 francs for letters and postcards and 50 centimes for other articles from the full sea rates of 15 francs and 1 franc, and then reducing the balance of the rate for letters and post-cards by oue-third, as provided by Article IV., section 5, 3°, of the Postal Union Convention. It is understood that the Post Offices of the Union differ somewhat as to the method of dividing the full sea rates when one or more sections of the total transit come within the limits of section 3, 2° (b), of the article above mentioned; but, in the opinion of the Postmaster-General, a reduction of the rates for the Pacific service to 5 francs and 50 centimes respectively could not be insisted upon. I am, &c, The Hon. the Postmaster-General, Wellington. H. Buxton Forman.

No. 10. The Secretary, Canterbury Chamber of Commerce, Chi istchurch, to the Hon. the PostmasterGeneral, Wellington. Sir, — Canterbury Chamber of Commerce, Christchurch, 12th June, 1905. I am directed to forward the following lesolution, which was carried at a general meeting of members on the Bth June, with reference to the delay in the arrival of the San Francisco mail in London. It was stated that on several occasions lately the mail has been two or more days, and in one case even five days, late, thus preventing prompt leplies to correspondence. It was also pointed out that the delay had the result of driving business to Australia which would otherwise come to New Zealand. This Chamber trusts that you will see your way to having matters improved. Resolution. That the attention of the Postmaster-General be directed to the frequent delays which have occurred in the arrival of the San Francisco mail in London, and that steps be taken to remedy this; and also that it is desirable that an alternative rapid service via Vancouver be maintained and assisted. Yours, &c, H. Antill Adlet, Secretary. The Hon. the Postmaster-General, Wellington.

No. 11. The Hon. the Prime Minister to the High Commissioner. Sir, — Prime Minister's Office, Wellington, 20th June, 1905. I have the honour to acknowledge the receipt of your letter of the 13th April last, drawing attention to the fact that the mails via San Francisco are seldom delivered in London on due date. I am only too conscious that the service has for some time been most irregular, especially during the last four or five months, mainly due to delays on the railway between San Francisco and New York and protracted voyages on the Atlantic, while the arrival of the steamers at San Francisco from Auckland an hour or two behind time further contributed to the late deliveries in London. Our Resident Agent at San Francisco has been repeatedly urged to endeavour to bring about an improvement in the overland journey; and the contractors, Messrs. the J. D. Spreckels and Bros. Company, have from time to time been firmly requested to see that their steamers reach San Francisco sufficiently early to admit of the mails being transhipped and forwarded by the 10 a.m. train for New York. The contractors, lam informed, are doing their best to insure due connection with this train, and I am hopeful that now the winter season is over there will be greater regularity in the London delivery. I fully realise the inconvenience which the late arrivals in London must have caused business firms. The delays, as you will have gathered, have not been generally due to late arrivals at San Francisco. Indeed, I may mention that the mail which left Auckland on the 21st April last and connected on due date with the morning east-bound train from San Francisco, was a day late in reaching London. The changes recently introduced should make for a more regular delivery in London—namely, the departure of the early train from San Francisco at 11 a.m., instead of 10 a.m., and the transfer of our mails to the Twentieth Century Express, a very fast train running between Chicago and New York. The prompt transmission and delivery of the San Francisco mails is carefully watched, and everything that is practicable is being done to minimise delays. I have, &c, Albert Pitt, for Prime Minister. The Hon. W. P. Reeves, High Commissioner for New Zealand, London.

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No. 12. Mr. Spkoul, San Francisco, to the Secrktaby, General Post Office, Wellington. Sir, — San Francisco, Gal., 29th June, 1905. Mr. Kudd, jour Mail Agent, is, 1 understand, sending you Press clippings anent the despatch given the " Ventura " mail eastward, which, as you are aware, arrived in New York in time to go forward by Gunard steamer. In talking over the question in general with my people here, they are of the opinion that Chicago represents the weak spot on the overland route, inasmuch that the transfer there does not receive the attention it should, and that on occasions better despatch from that point might have been made provided there had been a responsible agent in attendance. In this city the agent is hardly required, as the A. and A. Line officials see to it that absolutely no time is lost in transfer to the train. Mr. Cockroft, G.P.A. of the line, is taking a keen interest in the question, and is arranging matters so that even though the mails do not leave here till the Tuesday, 11 a.m. train (as on the occasion of the " Ventura " mail), they will arrive in New York in time to go forward by a Saturday steamer. Our New York agent is aware of our interest in the question, and in turn does all in his power to facilitate the trausfer. From now on, I do not believe there will be much cause for complaint in London on this score, as although our contract obligations cease at this port, our principals are determined to insure Saturday delivery at New York when the San Francisco arrival enables the Tuesday 11 a.m. train to be used. I expect to return to Auckland by the " Sierra," hence 20th proximo, and I hope to have the pleasure of meeting you before the year is out. With kind regards, Yours, &c, The Secretary, General Post Office, Wellington. V. A. Sproul.

No. 13. The Secretary, General Post Office, Wellington, to Messrs. Henderson and Macfarlane, Auckland. Gentlemen, — General Post Office, Wellington, 10th July, 1905. I have the honour to inform you that the Mail Agent, in his report of the last voyage of the R.M.S. " Sonoma " to Auckland, states that the steamer did not leave San Francisco until three days after time-table date. I shall be obliged if you will obtain and forward to me the explanation of the contractors of the late departure of the vessel on the occasion in question. I have, &c, Messrs. Henderson and Macfarlane, General Agents, W. Gray, Secretary. Oceanic Steamship Company, Auckland.

No. 14. The Secretary, General Post Office, Wellington, to the Secretary, Canterbury Chamber of Commerce, Christchurch. Sir, — General Post Office, Wellington, 10th July, 1905. I have the honour, by direction of the Postmaster-General, to refer to your letter of the 12th ultimo, forwarding copy of resolution passed at a meeting of your Chamber on the Bth idem, urging that steps be taken to minimise the delays in the arrival of the San Francisco mails in London, and that it is desirable to maintain and assist an alternative rapid service vid Vancouver. In reply, the Postmaster-General desires me to say that, unfortunately, he is aware of the late deliveries in London, and the consequent inconvenience to business firms and others. Endeavours have been made to minimise the delays, and the Department is doing everything that is practicable to secure greater regularity. Our Agent at San Francisco has been repeatedly urged to try and secure an improvement in the overland journey from San Francisco to New York, while the contractors have been firmly requested to see that their vessels reach San Francisco in time for the mails for London being forwarded by the morning train for New York, and it is believed with some effect. The Postmaster-General has endeavoured to arrange for the Vancouver steamers calling at New Zealand, but, unfortunately, so far without success. The negotiations, however, are to be continued. I have, &c, W. Gray, Secretary. The Secretary, Canterbury Chamber of Commerce, Christchurch.

No. 15. Messrs. Henderson and Macfarlane, Auckland, to the Secretary, General Post Office, Wellington. Oceanic Steamship Company, American and Australian Line, Sir, — Auckland, 15th July, 1905. We have the honour to acknowledge the receipt of your letters of the 10th instant (two), also statement showing weight of mail-matter conveyed by the " Sonoma " to San Francisco on the 12th May last, amount due thereon having been collected through the usual channel. With reference to the Mail Agent's report made you regarding the delay in the departure of the " Sonoma " from San Francisco last trip, we have to advise referring your remarks to Messrs. the J. D. Spreckels and Bros. Company, and on receipt of their reply will again communicate with you. We have, &c, Henderson and Macfarlane, General Agents for New Zealand. The Secretary, General Post Office, Wellington.

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VANCOUVER SERVICE.

No. 16. The Managing Director, Union Steam Ship Company, Dunedin, to the Hon. the PostmasterGeneral, at Christchurch. (Telegram.) Dunedin, 30th May, 1905. The present position regarding the Vancouver service is as follows: Our offer to Federal Government is to continue via Brisbane for subsidy of thirty thousand, being increase of six thousand, of which Canada has agreed to pay one-half; or, as an alternative, to omit Brisbane and call at New Zealand for a subsidy of twenty thousand, allowing us to retain subsidy contributed by New Zealand. In reply to this, Postmaster-General offers renew on present terms via Brisbane for one year, with proviso that if notice of termination not given by 30th April next the contract goes on for a second year. We propose to decline this, and urge him to consider alternative proposal via New Zealand. In view of this, can we rely on receiving the subsidy of twenty thousand from New Zealand, as has been from time to time verbally indicated ?

No. 17. The Hon. the Postmaster-General, at Hampden, to the Managing Director, Union Steam Ship Company, Dunedin. (Telegram.) Hampden, 30th May, 1905. In reply to your telegram re Vancouver service : Yes, the New Zealand Government will give twenty thousand pounds per annum for Vancouver mail-service, touching at Auckland or Wellington at the option of the contractors. The period for which a subsidy would be given by New Zealand Government would be three years, or, if you find it necessary to have a shorter period to conform with what you are doing with Australia, there would be no objection to a reduced period. The details of a contract with the Now Zealand Government would be subject to ratification by Parliament in the ordinary way, but I should not anticipate any difficulty arising in this respect.

No. 18. The Secretary, General Post Office, Wellington, to the Managing Director, Union Steam Ship Company, Dunedin. (Telegram.) Wellington, 18th July, 1905. Vancouver service: Do you receive the contributions from non-contracting colonies?

No. 19 The Managing Director, Union Steam Ship Company, Dunedin, to the Secretary, General Post Office, Wellington. (Telegram ) Dunedin, 19th July, 1905. Vancouver service: We do not receive contributions from non-contracting colonies under last contract, but have asked Commonwealth to provide for such payments being made to us under new contract.

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8

AUSTRALIA-SUEZ SERVICES.

No. 20. The Deputy Postmaster-General, Sydney, to the Secretabt, General Post Office, Wellington. (Telegram.) Sydney, 9th February, 1905. Wellington mails " Waikare," Auckland " Mokoia " for " Ormuz ' : Send weights.

No. 21. The Secretary, General Post Office, Wellington, to the Deputy Postmaster-General, Sydney. (Telegram.) Wellington, 10th February, 1905. Weights mails Wellington " Waikare," letters twenty-five pounds six ounces, other articles one hundred and sixteen pounds. Auckland " Mokoia," letters eleven pounds, other articles fifty pounds. If " Wanaka " mail Auckland second February kept for '• Ormuz " add, letters seventeen pounds three ounces, other articles one hundred and twelve pounds four ounces.

No. 22. The Deputy Postmaster-Genehal, Sydney, 1.0 the Secretary, General Post Office, Wellington. Commonwealth of Australia, Postmaster-General's Department, Sir, — General Post Office, Sydney, 11th February, 1905. I have the honour, with reference to my cablegram of the 9th instant, asking for the weights of mail-matter shipped per "Waikare" from Wellington, and "Mokoia" from Auckland for " Ormuz," to inform you that the information asked for is necessary so that this Department can pay the amount due according to poundage-rates on shipping mails on board the "Ormuz." . This information will also be required in all similar cases in future, and I shall be glad if you will kindly cause same to be supplied. I have, <fee, G. P. Unwin, The Secretary, General Post Office, Wellington. Deputy Postmaster-General.

No. 23. The Secretary, General Post Office, London, to the Hon. the Postmaster-General, Wellington. Sir, — General Post Office, London, 4th March, 1905. I am directed by the Postmaster-General to inform you that, in consequence of the termination of the contract between this Department and the Orient Steam Navigation Company, the colonial authorities have rearranged the working of the service between Colombo and Mauritius, and that the packets of the British India Steam Navigation Company conveying the mails between Ceylon and Mauritius now leave Colombo in connection with the arrival at that port of packets of the Peninsular and Oriental Steam Navigation Company. I am to enclose for your information copies of the time-table [not printed] which has been furnished to this office, showing the sailings of the packets in question under the present arrangement. It is observed that in the notice issued by you the dates of sailing from and arrival at Colombo are not in accordance with the new time-table. I am, &c, E. Crabb, The Hon. the Postmaster-General, Wellington. For the Secretary.

No. 24. The Secretary, General Post Office, Wellington, to the Secretary, Postmaster-General's Department, Melbourne. (Telegram.) Wellington, 15th March, 1905. Now that Commonwealth paying ordinary poundage-rates for transmission European mails, presume our payment to you reduced accordingly. Kindly state rates.

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No. 25. The Secretary, Postmaster-General's Department, Melbourne, to the Secretary, General Post Office, Wellington. (Telegram.) Melbourne, 20th March, 1905. Sum payable by New Zealand for European mails via Australia cannot yet be definitely stated. If no Australian territorial transit involved, claim only be made against New Zealand for sea and territorial transit at rates paid by Commonwealth.

No. 26. The Secretary, Postmaster-General's Department, Melbourne, to the Secretary, General Post Office, Wellington. Commonwealth of Australia, Postmaster-General's Department, Sir,— Melbourne, 13th April, 1905. With reference to previous correspondence respecting the carriage of mails between the Commonwealth and the United Kingdom, I have the honour to inform you arrangements have been made with the Orient-Pacific line of steamers for a fortnightly service, commencing at Adelaide to-day and Naples on the 16th instant. I have, &c, The Secretary, General Post Office, Wellington. Robt. T. Scott, Secretary.

No. 27. The Hon. the Postmaster-General of New Zealand, at Sydney, to the Secretary, General Post Office, Wellington. (Telegram.) Sydney, 29th April, 1905. Federal Postmaster-General publicly states before contract with Orient Company rate charged New Zealand was two shillings poundage-rate paid by the Federation States ; New Zealand might have paid larger amount under old contract system. Further states that New Zealand would be entitled to have her mails carried at Postal Union rates, which would be three shillings and sevenpence per pound. Cable me position fully. Leaving " Warrimoo " five to-day.

No. 28. The Secretary, General Post Office, Wellington, 1o the Hon. the Postmaster-General of New Zealand, at Sydney. (Telegram.) Wellington, 29th April, 1905. Under last Orient contract we paid twelve shillings per pound letters. During the break between last contract and new Orient one we were informed, in reply to inquiries, that the rate would be two shillings. We may now have the use of the new contract service for Postal Union rates as stated.

No. 29. The Deputy Postmaster-General, Melbourne, to the Secretary, General Post Office, Wellington. (Telegram.) Melbourne, 11th May, 1905. How are parcels by P. and O. and Orient steamers dealt with? Your quarterly statements only show letters 12s. per pound, books Is. 6d., newspapers 6d. Are parcels included with newspapers, cards with letters, packets with books? Do you pay for West Australian mails by these steamers? If so, to whom?

No. 30. The Secretary, General Post Office, Wellington, to the Deputy Postmaster-General, Melbourne. (Telegram.) Wellington, 11th May, 1905. London paid direct for Indian Ceylon parcels P. and O. No others sent. Packets included with books, cards with letters. We pay Adelaide Melbourne Commonwealth gratuity rates mails Western Australia. ■■ ■ •

No. 31. The Secretary, General Post Office, Wellington, to the Secretary, Postmaster-General's Department, Melbourne. Sir, — General Post Office, Wellington, 12th May, 1905. I shall be obliged if you will supply me, as soon as copies are at disposal, with two prints of the contract for the carriage of mails from Australia by the Orient-Pacific line of steamers. I have, &c, W. Gray, Secretary. The Secretary, Pastmaster-GeneraFs Department, Melbourne.

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No. 32. The Deputy Postmaster-General, Melbourne, to the Secretary, General Post Office, Wellington. * IR _ Post and Telegraph Department, Victoria, Melbourne, 27th May, 1905. I have the honour to acknowledge, with thanks, the receipt of your cable of the 11th instant, replying to mine of even date asking for certain particulars respecting New Zealand mailmatter by P and 0. and Orient boats, and would beg the favour of fuller information on the pointy name c ow. prepared by your office, and forwarded here with remittance the weights are shown only of letters, books, newspapers, under headings for London and England —Foreign Occasionally "you enclose a parcel-mail for India, and the question has arisen, how was the sea transit of these parcels paid for by you. The bags are not opened here, and it is therefore impossible for me to ascertain the contents. It was thought that, as newspapers were paid for at 6d. per pound, the few parcels sent by these steamers may have been included therewith Your rpply that "London is paid direct for Indian Ceylon parcels P. and 0., no others sent'" evidently refers to the new arrangements from the Ist February last, whereas the information required is for the period prior to that date. I have been unable to trace how your Western Australian mails which were forwarded by P. and 0. and Orient vessels were paid for Your cable states, "We pay Adelaide Melbourne Commonwealth gratuity rates mails West Australia i should be obliged if you would give me a reference to any statements which showed the weight of your Western Australian mails. The gratuities paid to non-contract vessels to Western Australia can be easily traced, but not for those mails by P. and 0. and Orient boats As the'matter is pressing, the courtesy of a reply by cable addressed to me would be appreciated. : haye > &c ." _ F. L. Outtrim, The Secretary, General Post Office, Wellington. Deputy Postmaster-General.

No. 33. The Secretary, General Post Office, Wellington, to the Deputy Postmaster-General, Melbourne. (Telegram ) Wellington, sth June, 1905. Yours twenty-seventh May. Indian parcel-post commenced September, 1901. London has been paid for P and 0. and Orient conveyance parcels from New Zealand since then. On Ceylon parcels we pay Ceylon for P. and 0. and Orient conveyance from New Zealand. Ceylon presumably pays over to you or London. As regards gratuities Western Australian mails, we pay what Australia claims,'as we are not in position to furnish statement showing mails conveyed by particular lines. Adelaide may be able to give you further information about latter.

No. 34. The Secretary, General Post Office, Wellington, to the Secretary, Postmaster-General's Department, Melbourne. SIR General Post Office, Wellington, 10th June, 1905. Referring to the letter of the 13th ultimo [No. I], from Sir Joseph Ward to the PostmasterGeneral of the Commonwealth, on the subject of payment for the conveyance of mails by the San Francisco and Eastern services, I have now the honour, by direction, to inquire whether the payments by this colony for the use of the Peninsular and Oriental and Orient Company's services will be based on Postal Union rates, and take effect in each case as from the dates when the new contracts commenced. As New Zealand bears the cost to Australia, the Postal Union rates, under Convention, Article IV., paragraph 3, subsection 2, (c), and paragraph 5, subsection 3, would, in proportion to the distance traversed, be reducible from 3s. 7.2 d. per pound for letters to 3s. 1.7 d. per pound, and from 4.32 d. per pound for other articles to 3.76 d. per pound. I have, &c, W. Gray, Secretary. The Secretary, Postmaster-General's Department, Melbourne.

No. 35. The Acting-Sbcretart, Postmaster-General's Department, Melbourne, to the Secretary, General Post Office, Wellington. Commonwealth of Australia, Postmaster-General's Department, g IB Melbourne, 16th June, 1905. I have the honour to acknowledge the receipt of your letter of the 10th instant, inquiring whether the payments by your colony for the use of the Peninsular and Oriental and Orient Company's services will be based on Postal Union rates, and take effect in each case as from the dates when the new contracts commenced. The matter will receive attention, and you will be further advised in due course. I have, &c, H. B. Templeton, The Secretary, General Post Office, Wellington. For Acting-Secretary.

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No. 36. The Secretary, Postmaster-General's Department, Melbourne, to the Secretary, General Post Office, Wellington. Commonwealth of Australia, Postmaster-General's Department, Sir,— Melbourne, 19th June, 1905. In compliance with the request contained in your letter of the 12th ultimo, I have the honour to forward herewith for your information two copies of the contract entered into for the carriage of mails between Australia and the United Kingdom by the Orient-Pacific line of steamers. I have, &c, H. B. Templeton, The Secretary, General Post Office, Wellington. For Secretary.

Enclosure in No. 36. His Majesty's Postmaster-General in and for the Commonwealth of Australia, and Orient Steam Navigation Company (Limited). Australian Mails. — Contract. Articles* of agreement under seal made and entered into this twenty-fifth day of April 1905 between the Honourable Sydney Smith His Majesty's Postmaster-General in and for the Commonwealth of Australia (hereinafter called the "Postmaster-General" in which term his successors in the office of such Postmaster-General for the time being shall be deemed to be included) on behalf of His Majesty of the first part Orient Steam Navigation Company Limited whose registered office is at No. 13 Fenchurch Avenue in the City of London in England (acting as well on behalf of themselves as also on behalf of the Pacific Steam Navigation Company whose registered office is at James Street Liverpool in England the said companies together constituting the owners of the Orient-Pacific line of steamers) hereinafter called the "contractors" (in which terms their successors and permitted assigns shall be deemed to be included) of the second part and the Law Guarantee and Trust Society (Limited) whose registered office is situate at 49 Chancery Lane in the County of London of the third part. These presents witness that in consideration of the matters hereinafter appearing it is hereby agreed and declared between and by the parties hereto and the Postmaster-General (as to the covenants agreements and stipulations hereinafter contained on his part) doth hereby covenant and agree with the Contractors and the Contractors (as to the covenants agreements and stipulations hereinafter contained on their part) do hereby covenant and agree with the PostmasterGeneral in manner following that is to say : Interpretation op Terms. 1. For all the purposes of this agreement — The term " mails " means and includes all bags boxes baskets or other packages of letters and other postal packets including parcels (each parcel not exceeding the maximum weight of 11 lb.) without regard either to the country or place to which such packages may be addressed or to the country or place in which they may have originated and also all empty bags boxes baskets or other receptacles and all stores and other articles used or to be used in carrying on the Post Office service. The term "postal packet" means any article for the time being transmissible by post and includes a parcel. The term "parcel" means a parcel within the meaning of "The Post and Telegraph Act, 1901." The term " mail-ship " i ?ans a vessel provided for the conveyance of mails under this agreement. The term "Adelaide" means the signalling-station (known as "Adelaide Semaphore") at or off the port of the City of Adelaide in South Australia. Services to be performed. 2. (1.) Subject to the provisions of this agreement the Contractors shall once in every fortnight during the continuance of this agreement at their own costs and charges in all respects convey via the Suez Canal and by means of mail-ships in each direction between Naples and Adelaide and between all other ports from which the mail-ships shall start or at which they shall call or arrive under the provisions of this agreement or for the purposes of the Contractors all mails which the Postmaster-General or any of his officers or agents shall from time to time and at any time or times require to be conveyed. (2.) For the purposes of this clause of this agreement the Postal authorities of His Majesty's Government and of the Colony of Ceylon and their respective officers and agents shall unless and until the Postmaster-General shall give notice to the Contractors to the contrary be deemed the agents of the Postmaster-General. (3.) Subject to the provisions of this agreement one of the mail-ships shall once in every fortnight upon such days at regular intervals and at such hours respectively as the Postmaster-General shall from time to time appoint (either by a time-table or time-tables to be from time to time approved by him or otherwise as he shall think fit) and immediately after the mails are embarked put to sea from Naples and proceed (via the Suez Canal) to Adelaide and one of the mail-ships shall at like periods and times and in like manner put to sea from Adelaide and proceed (vid the

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Suez Canal) to Naples and each of such mail-ships shall on each outward and homeward voyage respectively proceed to call at and start from the following intermediate ports or places—namely, Colombo and Fremantle. 4. (1.) Each of the mail-ships shall on every voyage from Naples to Adelaide as aforesaid start from a port in the United Kingdom and after the due delivery at Adelaide of the mails intended to be delivered at that port continue her voyage to Melbourne and thence to Sydney and each of the mail-ships shall on every voyage to Naples call at Sydney (and Melbourne on the route to Adelaide) and after the due delivery of the mails at Naples continue her voyage to a port in the United Kingdom whether any mails may or may not be required to be conveyed in any such mail-ship from or to the United Kingdom or to or from Melbourne or Sydney on any such voyage provided always that it shall be competent for the Contractors to convey the mails other than parcels mails between Port Said and Naples (or Brindisi if substituted) by a mail-ship other than the mail-ship which is under obligation to proceed to and start from a port in the United Kingdom in which event such last-named mail-ship shall be absolved from the obligation to call at Naples. (2.) The times at which the mail-ships shall start from or arrive at the port of departure or arrival in the United Kingdom Melbourne and Sydney and the rate of speed of the mail-ships between the United Kingdom and Naples and between Adelaide Melbourne and Sydney shall be fixed by the Contractors at their discretion but not so as to affect the period of transit between Naples and Adelaide hereinafter referred to. (3.) The Contractors shall be at liberty at their own option to continue the outward voyage (that is from the United Kingdom) of any mail-ship beyond Sydney after calling at Sydney and to commence the homeward voyage (that is to the United Kingdom) of the said mail-ship from any port provided she calls at Sydney. (4.) In the event of any accident or delay which would if any voyage of any mail-ship were continued beyond Adelaide or Melbourne respectively prevent any mail-ship from starting on her return homeward voyage from Adelaide at the time appointed for that purpose in pursuance of the provisions of this agreement the Contractors shall be at liberty to terminate the outward voyage of such mail-ship at Adelaide or Melbourne (as the case may be) and forthwith to commence the homeward voyage of such mail-ship at the same place respectively as the circumstances of the case may require. (5.) In any such case as is mentioned in the last subclause the Contractors shall bear the cost of conveying to Sydney or to Melbourne and Sydney (as the case may be) all parcels on board the mail-ship intended for transmission to those places and also the cost of the necessary conveyance from Sydney or Melbourne to Adelaide of any parcels intended for transmission from Sydney or Melbourne to be conveyed by the mail-ship on her homeward voyage. 5. (1.) Each entire voyage of each of the mail-ships in either direction between Naples and Adelaide shall be completed within a period of 696 hours (hereinafter called the " period of transit "). (2.) The period of transit shall include the time allowed for all stoppages of the mail-ships at the intermediate ports and the mail-ships shall stop on both the outward and homeward voyages at Fremantle for six hours and no less and at Colombo for such period as may be necessary for the purpose of delivering receiving or exchanging mails and in no case less than the period (not exceeding twenty-four hours) appointed by the Postmaster-General in that behalf. (3.) During the prevalence of the south-west monsoon the period of transit from Adelaide to Naples shall be extended by thirty-six hours. 6. (1.) Each period of transit shall be deemed to commence so soon after the time appointed by the Postmaster-General for the departure of the mail-ship from Naples and Adelaide respectively or after the completion of the embarkation of the mails intended to be thereby conveyed (whichever shall last happen) as (having regard to practical considerations) the anchor of such mail-ship can be weighed or the mail-ship can be loosed from her moorings and each such period of transit shall be deemed to be completed when the mail-ship has arrived and been anchored or moored in some position at the port or place of destination from which the mails can conveniently be disembarked. (2.) In any case in which any outward or homeward voyage between Naples and Adelaide may by reason of accident or other necessity be performed by more than one mail-ship the period of transit shall be reckoned from the commencement of the voyage of the mail-ship by which the first part of the conveyance shall be performed to the completion of the voyage of the mail-ship by which the last part of the conveyance shall be performed. (3.) The times of commencement and completion of each period of transit shall be ascertained and recorded and all calculations in connection therewith shall be made by officers of the Postmaster-General in pursuance of arrangements to be from time to time made by him for such purpose and the decision of Ihe Postmaster-General on all such questions shall be "final and conclusive. 7. Should it be deemed by the Postmaster-General his officers or agents requisite for the public service that any mail-ship should at any time or times delay her departure from any port from which the mails are to be conveyed under this agreement beyond the time appointed for her departure therefrom the Postmaster-General or any of his officers or agents shall have power to order such delay (not however exceeding twenty-four hours) by letter addressed to the master of any such mail-ship or any person acting as such and such letter shall be deemed a sufficient authority for such detention and in any such case an equivalent addition shall be made to the period of transit during which such detention shall take place. Character of Mail-ships and Conditions of Mail-service. 8. Every mail-ship shall be a good substantial and efficient steamship of adequate power and speed and supplied with first-rate appropriate steam-engines and shall be in all respects suited to

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the performance of the services herein agreed to be performed within the respective times herein stipulated and shall be provided and kept by the Contractors seaworthy and in complete repair and readiness to the satisfaction of the Postmaster-General. The mail-ships to be regularly employed in the service shall be provided with insulated spaces and refrigerating machinery for the carriage of perishable products but in the event of any such mail-ship being lost or withdrawn owing to accident or necessity for repairs the Contractors shall in order to maintain the regularity of the mail-service be at liberty temporarily to avail of steamers not so fitted. 9. Every mail-ship shall be always properly and sufficiently equipped in all respects so as to render her constantly efficient for the said services and safe for the conveyance of mails. 10. Every mail-ship and the equipment officers engineers and crew thereof shall be subject at all times to the inspection of the Postmaster-General or of such person or persons as he shall at any time or times authorise to make such inspection. The Contractors bind themselves to employ only white labour on vessels used or employed under this agreement but this condition shall not apply to the coaling or loading of the mail-ships at places beyond the limits of the Commonwealth. In view of the impossibility of the Contractors complying with the condition that white labour only shall be employed in the carriage of mails at the date when this agreement comes into operation the Postmaster-General agrees that no deductions for breaches shall be made from the agreed subsidy nor other penalties incurred on that account by the Contractors provided that white labour only be so employed in all mail-ships leaving London after the 31st day of May, 1905. 11. (1.) If the Postmaster-General shall at any time consider any mail-ship unfit for service under this agreement he may require the Contractors to show cause why such mail-ship should not be withdrawn from the service and unless the Contractors shall forthwith show cause to the contrary to the satisfaction of the Postmaster-General he may after and subject to such determination as is provided for in the next subclauses declare such mail-ship to be unfit for service under this agreement and after such notice requiring the Contractors to show cause as aforesaid shall have been given the Contractors shall not employ such ship in the performance of this agreement until the question has been settled as hereinafter mentioned. (2.) In order to determine whether the Postmaster-General may declare any mail-ship unfit for service or whether the Contractors shall be able to show cause to the contrary a special examination shall be made of the hull and machinery of any such mail-ship by such person or persons as may be mutually approved by the Postmaster-General and the Contractors and his decision shall be binding on both parties. (3.) Failing such mutual approval as aforesaid the question shall be settled by arbitration as hereinafter provided the Postmaster-General undertaking if called upon so to do to nominate and appoint an arbitrator on his behalf within three days of the Contractors' request to do so. 12. The Contractors shall at their own cost and to the satisfaction of the Postmaster-General provide on each mail-ship a separate room or rooms for the convenient and secure deposit of the mails under lock and key and the services of the crew of every such mail-ship shall from time to time be given in the conveyance of the mails to and from such mail room or rooms. 13. (1.) The Contractors shall at their own cost land deliver and embark the mails at all ports or places at which the mails are to be landed delivered and embarked and shall accordingly at their own cost provide suitable means and proper assistance for and shall be responsible for the due landing delivery and embarkation of the mails. (2.) The Contractors and all commanding and other officers of the mail-ships and all agents seamen and servants of the Contractors shall at all times punctually attend to the orders and directions of the Postmaster-General his officers or agents as to the mode time and place of landing delivering and embarking the mails and shall at all times protect the mails to the utmost of their power. 14. (1.) The master or commander of each of the mail-ships shall whenever required by the Postmaster-General his officers or agents so to do (without any remuneration other than the subsidy payable to the Contractors under this agreement) take charge of the mails conveyed or intended to be conveyed by such mail-ship and shall adopt all necessary measures and precautions for the safety of the mails to the satisfaction of the Postmaster-General his officers and agents. (2.) Each of such masters or commanders shall make the usual declaration or declarations required or which may hereafter be required by the Postmaster-General in such and similar cases and furnish such journals returns and information to and perform such services as the PostmasterGeneral his officers or agents may require. (3.) Every such master or commander or officer duly authorised by him having charge of mails shall himself immediately on arrival of the mail-ship at any port or place deliver all mails for such port or place into the hands of the postmaster of such port or place or of such other person at such port or place as the Postmaster-General shall authorise to receive the same and shall in like manner receive all the return or other mails to be forwarded in due course. 15. The Contractors shall undertake and make all necessary and proper arrangements in compliance with any Acts of Parliament and any statutory regulations relative to public health or in connection with quarantine which may be required in respect of the mail-ships and no deduction shall be made from the subsidy payable under this agreement nor shall the Contractors be otherwise liable for or by reason of any delay in the landing embarkation delivery or conveyance of any mails arising from the observance of any such Acts or regulations or the imposition of quarantine. 16. (1.) Nothing of this agreement shall exempt the Contractors or any mail-ship from the operation of any Act of Parliament Order in Council by-law or other provision of the law in relation to explosives. (2.) The Contractors shall not knowingly convey in any mail-ship any article which in the opinion of the Postmaster-General is likely to endanger the mails.

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17. The Contractors shall be responsible for the loss or damage of any parcel or of any registered postal packet of any kind conveyed or tendered for conveyance under this agreement (unless such loss or damage be caused or occasioned by act of God the King's enemies pirates restraints of princes ruler» or people jettison barratry fire collision or perils or accidents of the seas rivers and steam navigation or any of the other conditions enumerated in clause 8 of the Sea Carriage of Goods Act) and in the event of any such loss or damage (except as aforesaid) the Contractors shall be liable to pay to the Postmaster-General in respect of each parcel or registered postal packet so lost or damaged (subject to the proviso hereinafter contained) such sum of money as shall be equal to the amount which shall be awarded and paid hy the Postmaster-General at his sole option and discretion (and although not under any legal obligation) to the sender or addressee of such parcel or registered postal packet as compensation for the loss or damage thereof. Provided that such sum shall not in any case exceed one pound per parcel or two pounds per registered postal packet. 18. The Contractors shall not nor shall any master or commander of any mail-ship except as they may be compelled by law receive or permit to be received on board any mail-ship for conveyance thereby any letters other than those which they are required or expressly permitted to carry under this agreement and any such letters as are not required by law to pass through the Post Office nor shall the Contractors or any such master or commander receive or permit to be received on board any mail-ship for conveyance thereby any mails on behalf of any colony or foreign country without the consent of the Postmaster-General and the entire postage of all mails conveyed by any mail-ship under this agreement shall in all cases (as between the Postmaster-General and the Contractors) belong to the Postmaster-General and shall be absolutely free from all claims or demands whatever of or by the Contractors under or by virtue of this agreement or otherwise. Modification ov Services. 19. If at any time or times the Postmaster-General shall for any reason whatever desire to alter the particular days times or hours appointed for the departure from and arrival at Naples and Adelaide respectively of the mail-ships he shall give to the Contractors three calendar months' notice in writing of such desire. 20. (1.) If at any time or times the Postmaster-General shall deem it necessary or expedient in the public interest that the mails shall be conveyed between the United Kingdom and Adelaide Melbourne or Sydney by way of the Cape of Good Hope or Cape Horn instead of by way of the Suez Canal the Contractors as soon as reasonably practicable after receiving notice from the Post-master-General to that effect shall in lieu of the services hereinbefore contracted to be performed convey the mails by means of the mail-ships by way of the Cape of Good Hope or Cape Horn (at the discretion of the Contractors) between Plymouth or such other convenient port or place in the United Kingdom (as may be agreed upon between the Contractors and the Postmaster-General) and Adelaide Melbourne or Sydney calling at Fremantle. (2.) In such case the mails shall be conveyed between the United Kingdom and Adelaide Melbourne or Sydney at such rates of speed (and on such other conditions) as may be agreed between the Postmaster-General and the Contractors or in default of agreement as may be determined by arbitration. (3.) Subject to the provisions of this clause all the provisions of this agreement with reference to the services to be performed by the Contractors shall (so far as the same are applicable) apply to the embarking conveying landing and delivery of the mails under the provisions of this clause. (4.) The Postmaster-General shall not in respect of the substituted service in this clause mentioned make any additional payment to the Contractors unless by reason of the performance of such substituted service and on no other account the Contractors shall sustain a loss of general revenue or incur expenses exceeding the expenses ordinarily incurred in the conveyance of the mails to and from Naples under the provisions of this agreement. (5.) Should any such loss or additional expenses as last aforesaid be sustained or incurred by the Contractors the Postmaster-General shall pay to the Contractors in addition to the subsidy hereinafter mentioned such sum of money as may be agreed upon between him and them or failing such agreement as shall be determined by arbitration and upon such arbitration due regard shall be had to the respective interests of the Contractors and the Postmaster-General in the performance of the voyage or voyages of any mail-ship by which the mails shall have been conveyed under the provisions of this clause. 21. (1.) If at any time the Postmaster-General shall deem it necessary or expedient in the public interest to substitute for Naples as the port or place for the commencement and termination of the respective outward and homeward services under this agreement another port on the Continent of Europe or in the United Kingdom the Contractors shall on receiving three months' notice from the Postmaster-General to that effect convey the mails to and from such other port or place in substitution for Naples and this agreement shall in respect of the services to be rendered by the Contractors be read and construed as if the name of such other port or place on the Continent of Europe or in the United Kingdom appeared throughout the same in lieu of the word " Naples." (2.) In the event of such substitution as hereinbefore mentioned the period of transit between Naples and Adelaide shall be liable to be increased or diminished to such an extent as shall be agreed upon between the Postmaster-General and the Contractors or failing agreement as shall be determined by arbitration and the subsidy payable hereunder shall be liable to be increased or diminished iii such manner as (having regard to all the circumstances of the case and particularly to any expense or loss incurred or to any risk run by or any advantage accuring to the Contractors in consequence of such substitution) shall be agreed upon between the Postmaster-General and the Contractors or failing agreement shall be determined by arbitration. 22. The powers conferred upon the Postmaster-General by the two last preceding clauses may be exercised in relation to a temporary or a permanent change of route or of port (as the case may be) and in the case of a temporary change may be exercised as often as the Postmaster-General

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deems it expedient and the Postmaster-General may in his notice requiring the change specify the period during which such change shall take effect or require such change to be made until further notice and at the expiration of the time limited by the Postmaster-General or upon receiving reasonable notice from the Postmaster-General to that effect (as the case may be) the Contractors shall revert to the original route or port (as the case may be). 23. The Contractors may at any time on giving three calendar months' previous notice in writing of their desire so to do to substitute Brindisi for Naples as the port or place for the commencement and determination of the outward and homeward voyages of the mail-ships and from and after the expiration of such notice the port of Brindisi shall for all the purposes of this agreement be substituted for the port of Naples and the several provisions of this agreement shall be read and construed as if the word " Brindisi " appeared throughout the same in lieu of the word " Naples." Subsidy and Deductions. 24. In consideration of the covenants and agreements herein contained and on the part of the Contractors to be observed and performed and of the due and faithful performance by the Contractors of all such covenants agreements and services under this agreement there shall be payable to the Contractors during the continuance of this agreement (out of such aids or supplies as may from time to time be appropriated by Parliament for that purpose) a yearly subsidy or sum at the rate of .£120,000 per annum or (in'the event of any such default or failure as hereinafter mentioned) so much of the said subsidy or sum as shall remain payable in respect of any year after making such deductions therefrom (if any) as hereinafter in that behalf mentioned in respect of any such default or failure. 25. There shall be forfeited and paid by the Contractors to the Postmaster-General the following sums in the following events (that is to say): — (1.) If the Contractors shall fail to commence the performance of the services hereby agreed to be performed on the 13th day of April 1905 from Adelaide and on the 16th day of April 1905 from Naples the Contractors shall forfeit and pay the sum of £100 for every complete period of twenty-four hours which shall elapse before the Contractors shall commence the performance of such services. Provided that the amount which shall become payable by the Contractors in respect of such default as aforesaid shall not in the aggregate exceed the sum of £20,000. (2.) On each occasion when after the Contractors have commenced the performance of the services hereby agreed to be performed the Contractors shall fail to provide a mail-ship at Naples or Adelaide ready to put to sea in accordance with this agreement at the appointed time or any mail-ship provided by the Contractors as aforesaid shall not in fact put to sea and on her voyage at the appointed time the Contractors shall forfeit and pay the sum of £250 and also the further sum of £50 for every successive twenty-four hours which shall elapse until such mailship shall actually put to sea and proceed on her voyage in pursuance of this agreement. Provided that the aggregate amount of the sums payable as last aforesaid shall not exceed by more than £1,000 that part of the said subsidy for the current year which shall be applicable to the voyage in respect of which default shall have been made. And provided further that the provisions of this subclause shall not apply to such services as may be required under clause 20. And provided further that no penalty as above shall be imposed for failure on the part of the Contractors to provide the mail-ship which in order to preserve the continuity of the fortnightly serivce should be provided at Adelaide on the 25th day of May 1905 and that such failure shall not be treated as a breach of the agreement but that a pro rata amount of the subsidy shall be deducted in respect thereof. . (3 ) On each occasion when the mails shall not be conveyed from JNaples to Adelaide or from Adelaide to Naples within the period of transit hereinbefore specified the Contractors shall forfeit and pay the sum of £100 for every complete twenty-four hours by which the time actually occupied in the conveyance of such mails from Naples to Adelaide or from Adelaide to Naples (as the case may be) shall have exceeded the period of transit hereinbefore prescribed in that behalf. Provided that--(a) The aggregate amount of the sums payable in respect of any such default or failure as in this subclause mentioned shall not exceed that part of the said subsidy for the current year which shall be applicable to the voyage which has been performed or which ought to have been performed in the conveyance of such mails; and (6) No such payment as in this subclause mentioned shall be made if the Contractors shall prove to the satisfaction of the Postmaster-General that such default arose wholly or in part from any cause or causes altogether beyond the control of the Contractors. (4 ) Each and all of the said several sums of money hereinbefore stipulated to be paid by the Contractors to the Postmaster-General in the event of failure or default of the Contractors as aforesaid shall be due and payable as stipulated ascertained or liquidated damages and not by wav of penalty and (except as aforesaid) from whatever cause or causes such failure or default shall have arisen and although such failure or default may have arisen wholly or in part from any cause or causes beyond the control of the Contractors save as in the last paragraph mentioned and although no loss shall be or may have been sustained by reason or in consequence of such failure or default and every such sum shall at the option and discretion of the Postmaster-General be either deducted by him'from any moneys then payable or thereafter to become payable to the Contractors under this agreement or be recovered as a debt to the Commonwealth with full costs SU (S ) The payment of or liability to pay any sum hereinbefore mentioned shall in no way preiudice the right of the Postmaster-General to treat as a breach of this agreement the failure in respect of which such sum shall become payable by the Contractors as aforesaid.

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)26. All accounts between the Postmaster-General and the Contractors id relation to the said subsidy and any deductions thereform as hereinbefore provided shall be made out and settled quarterly up to and on or as soon as conveniently may be after the 31st day of March the 30th day of June the 30th day of September and the 31st day of December in each year and the amount or balance (if any) which shall be due to the Contractors on each such quarterly account shall be paid by the Postmaster-General in London out of such aids or supplies as aforesaid upon the settlement of each such account and for the purpose of such accounts the said subsidy shall be deemed to commence on the 4th day of April 1905 and to accrue from day to day subject to the liability of the same to the several deductions aforesaid and all such payments shall be received by the Contractors in full satisfaction and discharge of all claims and demands by them for or on account of the services hereby contracted to be performed and for or on account of all and every other the covenants and agreements herein contained and on the part of the Contractors to be kept observed and performed or any damages losses or expenses which may be sustained by the Contractors in respect thereof. Teem of Agreement and Incidental Provisions. 27. This agreement shall come into operation on the 4th April 1905 and shall continue in force until the 31st January 1908 inclusive and shall then determine if notice in writing to that effect shall have been given twenty-four calendar months previously to the said last-mentioned date either to the Contractors by the Postmaster-General or to the Postmaster-General by the Contractors and if not so determined this agreement shall continue in force after such last-mentioned date until the expiration of a notice of a like duration given by either party at any time. Provided always that under any notice which may be given so as to take effect after 31st January 1908 the Contractors shall be entitled to receive one fifty-second part of the annual subsidy of £120,000 in respect of the despatch of any and every mail either from Adelaide or from Naples for which they may be called upon to provide subsequent to the said 31st January 1908. 28. (1.) If at the date of the determination of this agreement any mail-ship shall have started or ought to have started and after such determination shall start on any voyage with the mails on board in conformity with this agreement such voyage shall be continued and performed and the mails be delivered and embarked during and at the completion of the same, and all the provisions of this agreement be observed as if this agreement had remained in force with regard to such mail-ship and services and with respect to such mail-ship and services this agreement shall be considered as having terminated when such mail-ship shall have reached her port or place of destination and such services shall have been performed. (2.) In respect of any such voyage as in this clause mentioned the Contractors shall not subject to the proviso in clause 27 be entitled to receive any payment or compensation for the same over and above the subsidy payable under this agreement on the day when this agreement (otherwise than as to any such voyage) determines. Supplemental Provisions. 29. It shall be lawful for the Postmaster-General at any time and from time to time to delegate any of the powers vested in him by virtue of these presents to such person or persons as he shall think fit. 30. The Contractors shall not assign underlet or dispose of this agreement or any part thereof without the consent of the Postmaster-General signified by an instrument in writing and such consent in writing shall be necessary on each occasion it is proposed to assign or underlet the contract or any part of it. 31. If this agreement or any part thereof is assigned underlet or otherwise disposed of without the consent of the Postmaster-General and or if any great or habitual breach on the part of the Contractors their officers agents or servants of this agreement or of any covenant condition matter or thing herein contained shall be committed it shall be lawful for the PostmasterGeneral if he shall think fit and notwithstanding there may or may not have been any former breach of this agreement or of any covenant or condition herein contained by an instrument in writing to determine this agreement without any previous notice to the Contractors and the Contractors shall not be entitled to any compensation in respect of such determination and such determination shall not deprive the Postmaster-General of any right or remedy to which he would otherwise be entitled by reason of such breach or of any prior breach of this agreement Provided always that in case within seven days after service as aforesaid on the Contractors of a notice determining this agreement the Contractors gave a notice in writing to the Postmaster-General that they dispute the sufficiency of such breach to justify the Postmaster-General in determining this agreement such dispute shall be referred to arbitration and in such case this agreement shall notwithstanding such notice of determination continue in force unless and until an award shall be made to the effect that such breach or breaches was or were sufficient to justify the Post-master-General in giving such notice of determination as aforesaid. 32. The Postmaster-General will use his good offices with the Governments of the several Australian States to endeavour to secure that the Contractors shall not be compelled to pay in respect of any mail-ship calling at any port or place in any of the said States any port or light dues or other charges of a public nature other than or in excess of the dues or charges for the time being payable at the like port or place in respect of any other vessel of a like character whether employed in the conveyance of mails or not. 33. (1.) Any notice to determine this agreement or request under clause 37 if given by the Postmaster-General shall be served by being left at or forwarded by post to the Contractors at their registered office or to their recognised agents in Melbourne or Sydney and any such notice if given by the Contractors and any other notice given by the Contractors shall be served by being sent by post to the Secretary Postmaster-General's Department Spring Street Melbourne.

17

b\— 6a,

(2.) All notices requests or directions (other than as aforesaid) which the Postmaster-General his officers or agents are hereby authorised to give to the Contractors their officers servants or agents may at the option of the Postmaster-General his officers or agents either be delivered or sent by post to the master of any mail-ship or to any other officer or agent of the Contractors in charge or management of any mail-ship or be left for or forwarded by post to the Contractors at any office or place of business of the Contractors or of any of their agents at any port of call of the mail-ships as occasion may require and auy notices or directions so given left or sent by post shall be binding on the Contractors. 34. Should the earnings of the mail-ships be diminished and or the expenses of running the mail-ships be increased either or both and whether prospective or actual by an amount of not less than £5,000 per annum at any time during the currency of this agreement in consequence of Commonwealth legislation relating to shipping enacted subsequent to the date of this agreement the Contractors shall be at liberty at any time after such enactment to determine this agreement on giving six months' notice in writing to the Postmaster-General of their intention so to do. Provided always that if so required the Contractors shall furnish the Postmaster-General with a statement of the amount and particulars of such diminution of earnings and or increase of expenses such statement to be certified by a chartered accountant to be mutually agreed upon. Provided further that should the Postmaster-General with the consent of Parliament elect in writing within one month of such notice being given to increase as from the date of such legislation coming into operation the annual subsidy payable to the Contractors by a sum equal to such diminution of earnings and or increase of expenses or by such other sum as may be mutually agreed upon such notice of termination shall be deemed to have been withdrawn and the contract shall continue on the same terms with the exception only of the increased subsidy (if any) payable to the Contractors. 35. In the event of declaration of war or of war breaking out between Great Britain and any first-class naval Power it shall be lawful for the Contractors to determine this agreement as from the date of such declaration or breaking-out of war, or should His Majesty's Government at any time during the continuance of this agreement under any subvention agreement in force at the date of this agreement being entered into charter or acquire or in case of great public emergency compulsoril}- requisition or acquire so many of the mail-ships employed in the performance of this agreement that the Contractors shall be unable to carry on the service it shall be lawful for the Contractors or the Postmaster-General to determine this agreement from the date of such charter acquisition or requisition of such mail-ships. 36. This agreement shall not be binding until it has been approved of by a resolution of the Commonwealth Parliament. 37. (1.) When any dispute or other matter authorised or directed by this agreement to be settled by arbitration shall have arisen then unless both parties 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 or other matter shall be referred. (2.) Every appointment of an arbitrator shall be made on the part of the PostmasterGeneral under the hand of His Majesty's Postmaster-General for the time being in and for the Commonwealth of Australia and on the part of the Contractors under their common seal or by their attorney duly constituted and such appointment shall be delivered to the arbitrator or arbitrators and shall be deemed a submission to arbitration on the part of the party by whom the same shall be made. (3.) If for the space of fourteen days after any such dispute or other matter shall have arisen and after a request in writing in which shall be stated the matters so required to be referred to arbitration shall have been served by the one party on the other party to appoint an arbitrator such last-mentioned party fail to appoint such arbitrator then upon such failure the party making the request and having himself appointed an arbitrator may appoint such arbitrator to act on behalf of both parties. (4.) 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 and conclusive. (5.) If before the matter so referred shall be determined any arbitrator appointed by either party neglects or refuses to act or dies or becomes incapable to act as arbitrator the party by whom such arbitrator was appointed may nominate and appoint in writing such other person to act in his place and if for the space of seven days after notice in writing from the other party for that, purpose he fail to do so the remaining or other arbitrator may proceed alone 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 refusal neglect or disability as aforesaid. (6.) 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 any matters on which they shall differ or which shall be referred to him under the provisions of this agreement and if such umpire shall die or become incapable to act or refuse or for seven days neglect to act after being called upon to do so by the arbitrators they shall forthwith after such death incapacity refusal or neglect appoint another umpire in his place and the decision of every such umpire on matters so referred to him shall be final. (7.) If in either of the cases aforesaid the arbitrators shall refuse or shall for seven days after request of either party to such arbitration neglect to appoint an umpire it shall be lawful for any Judge of the High Court of Australia on the application of either party to such arbitration, due notice of which shall be given to the otEer to 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 under this agreement shall be final.

3—F. 6a.

¥.— &a

18

(8.) Where two arbitrators and an umpire have been appointed under this agreement they shall sit together and hear the evidence so that in the event of the arbitrators not agreeing upon an award the umpire may make his award without rehearing the evidence. (9.) If when a single arbitrator shall have been appointed such arbitrator shall die or become incapable to act before he shall have made his award or shall refuse or for fourteen days neglect to act the matters referred to him shall be determined by arbitration under the provisions of this agreement in the same manner as if such arbitrator had not been appointed. (10.) 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 alone and the decision of such other arbitrator shall be as effectual as if he had been the single arbitrator appointed by both parties. (11.) 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 two months after the day on which the last of such arbitrators shall have been appointed or within such extended time (if any) not being greater in the whole than six months as shall have been appointed for that purpose by both of such arbitrators under their hands the matters referred to them shall be determined by the umpire appointed as aforesaid. (12.) The said arbitrators of their umpire may hear receive and examine evidence may call for the production of any documents 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 oath necessary for that purpose. (13.) The arbitrators shall within fourteen days after the making thereof deliver their award in writing to the Postmaster-General and the Postmaster-General shall retain the same and shall forthwith on demand furnish a copy thereof to the other party and shall at all times on demand produce the said award and allow the same to be inspected or examined by such party or any person appointed by him for that purpose. (14.) The submission to any such arbitration may be made a rule of the High Court on the application of either of the parties. (15.) No award made with respect to any question referred to arbitration under the provisions of this agreement shall be set aside for irregularity or error in matter or form. 38. And lastly for the due and faithful performance of all and singular the covenants conditions provisos clauses articles and agreements hereinbefore contained which on the part and behalf of the Contractors are or ought to be observed performed fulfilled and kept the Contractors do hereby bind themselves and their successors and the said Law Guarantee and Trust Society (Limited) doth hereby bind itself and its successors jointly and severally unto our Sovereign Lord the King in the sum of £20,000 of lawful money of the United Kingdom to be paid to our said Lord the King liis heirs and successors by way of penalty in case of the failure on the part of the Contractors to observe and perform all or any of the covenants conditions and services to be kept observed and performed by them at the times and in the manner hereinbefore set forth. Tn witness whereof the Postmaster-General hath hereunto set his hand and seal and the Contractors and the Law Guarantee and Trust Society (Limited) have hereunto affixed their respective common seals the day and year first before written.

Approximate Cost of Paper.—Preparation, not given ; printing (1,560 copies), £8 4s. od.

By Authority: John Mackay. Government Printer. Wellington. 1905.

Price, 9d]

This report text was automatically generated and may include errors. View the full page to see report in its original form.
Permanent link to this item

https://paperspast.natlib.govt.nz/parliamentary/AJHR1905-I.2.3.4.7

Bibliographic details

OCEAN MATL-SERVICES (FURTHER PAPERS RELATING TO). [In continuation of Paper F.-6, presented on the 21st July, 1905.], Appendix to the Journals of the House of Representatives, 1905 Session I, F-06a

Word Count
14,136

OCEAN MATL-SERVICES (FURTHER PAPERS RELATING TO). [In continuation of Paper F.-6, presented on the 21st July, 1905.] Appendix to the Journals of the House of Representatives, 1905 Session I, F-06a

OCEAN MATL-SERVICES (FURTHER PAPERS RELATING TO). [In continuation of Paper F.-6, presented on the 21st July, 1905.] Appendix to the Journals of the House of Representatives, 1905 Session I, F-06a

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